Real wages and basic food supply in Brazil

ABSTRACT

According to the available data, real wage has been declining since 1980, in terms of wage goods, mainly food, even in the presence of several nominal wage policies. The main consequence has been the acceleration of the national income concentration, against the labor share. In order to solve this problem and to increase the real wages, the government should adopt a program in the direction of the economic development. To make this possible, it is necessary: (a) to concentrate the investment in the wage goods production; (b) to stimulate the wage goods demand and (c) to utilize the “normal” external prices as a price indicator to the Brazilian agriculture producer.

KEYWORDS:
Wages; income concentration; consumption