Labor productivity, real wages and unemployment in the Brazilian manufacturing in 90's: theory and evidence

This paper investigates if the gains of labor productivity verificated in the Brazilian industry in the nineties had some impact on the behavior of real wages. For this uses the Ball and Moffit's (2001) model, wich incorporates the labor productivity in a explanation of the real wages variation. The nineties were divided in two periods for analysis: January 1990 to June 1994 and July to December 2000. The results will point out that the labor productivity was a significative variable in the explanation of wages before the Real Plan.

labor productivity; real wages; manufacturing


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