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Wage policy and income distribution: a proposal for discussion

ABSTRACT

This article suggests a Government policy for improving the Brazilian income distribution which relies on the application of a formula that makes increases of productivity be shared according to the relative wages of workers. In a context in which short-terrn constraints - specially the inflation - are not as important as they were until recently and structural problems tend to be the main aim of Government policy, the conclusions of this article are that a better income distribution can be obtained if the economy continues to grow at sufficient high rates and that this could happen provoking losses on the earnings of some income classes.

KEYWORDS:
Wage policy; income distribution

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