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Analysis of two sectors in the labor market: effects of the Real Plan

Author

Listed:
  • Ana Flávia Machado
  • Danielle Carusi Machado

Abstract

Brazilian government economic plan named "Real" affected the tradable and non-tradable sectors labor market in different ways. The exchange policy and the free-market oriented process adopted provoked changes in relative prices in favour of the non-tradable sector. This article shows the increasing of the labor force in this sector and a reduction of the gap between tradable and non-tradable sector income. Furthermore, it shows the improving in labor force poverty indicators, specially those related to the informal sector. This article is based on data from PME-IBGE (metropolitan region of São Paulo, 1994, 1995 and 1996). JEL Classification: J21; J80.

Suggested Citation

  • Ana Flávia Machado & Danielle Carusi Machado, 1998. "Analysis of two sectors in the labor market: effects of the Real Plan," Brazilian Journal of Political Economy, Center of Political Economy, vol. 18(4), pages 612-622.
    • Handle: RePEc:ekm:repojs:v:18:y:1998:i:4:p:612-622:id:1154
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    More about this item

    Keywords

    Occupation; wage differentials; poverty; Real Plan;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General

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