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Tertiary activities and informality: quantitative importance and interconnections within the economy in Brazil

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  • Azzoni, Carlos Roberto
  • Guilhoto, Joaquim José Martins

Abstract

This paper studies the importance of the Tertiary sector and the informal sector for the Brazilian economy, making an interconnection between them and with them and the rest of the economy and the formal sector. To do so, this work makes use of the data presented in the System of National Accounts and the National Survey of Households (PNAD), both from IBGE, and the Leontief model. The results show: a) the importance of the Tertiary sector for the Brazilian economy in terms of employment (around 61% of the occupied persons), and income generation (around 67% of the economy Value Added); b) the high share of the informal sector in the Brazilian economy (around 58% of the occupied persons and 34% of the income); c) the combination of these factors results in an economy with low wages and salaries and with an high concentration of income; and d) that the present productive structure of the Brazilian economy contributes to the concentration of income in the country.

Suggested Citation

  • Azzoni, Carlos Roberto & Guilhoto, Joaquim José Martins, 2010. "Tertiary activities and informality: quantitative importance and interconnections within the economy in Brazil," MPRA Paper 30692, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:30692
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    References listed on IDEAS

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    1. Gabriel Ulyssea, 2005. "Informalidade no Mercado de Trabalho Brasileiro : Uma Resenha da Literatura," Discussion Papers 1070, Instituto de Pesquisa Econômica Aplicada - IPEA.
    2. Henley, Andrew & Arabsheibani, Reza & Carneiro, Francisco G., 2006. "On Defining and Measuring the Informal Sector," IZA Discussion Papers 2473, Institute of Labor Economics (IZA).
    3. Guilhoto, J. J. M. & Sesso Filho, U. A., 2005. "Estimação da Matriz Insumo-Produto a Partir De Dados Preliminares das Contas Nacionais [Estimation of input-output matrix using preliminary data from national accounts]," MPRA Paper 38212, University Library of Munich, Germany.
    4. Hugues Jennequin, 2008. "The evolution of the geographical concentration of tertiary sector activities in Europe," The Service Industries Journal, Taylor & Francis Journals, vol. 28(3), pages 291-306, April.
    5. Henley, Andrew & Arabsheibani, G. Reza & Carneiro, Francisco G., 2009. "On Defining and Measuring the Informal Sector: Evidence from Brazil," World Development, Elsevier, vol. 37(5), pages 992-1003, May.
    6. Hugues Jennequin, 2008. "The evolution of the geographical concentration of tertiary sector activities in Europe," Post-Print hal-02391302, HAL.
    7. Neri, Marcelo Côrtes, 2006. "Informalidade," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 635, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Tertiary Activities; Informality; Input-Output; Employment;
    All these keywords.

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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