Transcript Employment Policies

Macroeconomic Model
and Labor Market
Features
Mário dos Santos Barbosa
Special Advisory for International Affairs
Ministry of Labor and Employment of Brazil
Employment Policies and Labor
Market Policies
 Employment
Policies: macroeconomic
policies that target demand, product and
employment level expansion;
 Labor
Market Policies: labor
intermediation, professional training,
unemployment benefits, labor inspection.
Employment Policies
 Social
-
Policies
Social spending multiplier: every 1 Real spent with the Brazilian
Minimum Income Program (Programa Bolsa Família) is estimated to
generate R$1,44 in the product
SOCIAL SPENDING EVOLUTION – FEDERAL BUDGET
(as % of the GDP and in millions of 2012 reais)
MINIMUM WAGE EVOLUTION
SOCIAL SECURITY COVERAGE
INDEX EVOLUTION
ECONOMICALLY ACTIVE
POPULATION – 16 TO 59 YEARS
OLD
Macroeconomic model: economic
growth with income redistribution
PER CAPITA INCOME AND INEQUALITY INDEX (GINI)
EVOLUTION – BRAZIL 1960 - 2010
Source: Pochmann, 2012: 15
Employment growth at the base of
the pyramid
Source: Pochmann, 2012: 19
Average salary according to RAIS
(Social Information Anual Report)

Average Salary according to the region of the country:
The data shows generalized real gains, with less developed
regions of the country showing larger gains
• North (3,80%);
• Northeast (3,65%);
• South (3,51%);
• Southeast (2,62%);
• Central-West (1,81%).
Results: historical minima in the
unemployment rate
Source: IPEA, 2013: 07
Significant fall in the informality
index in the 2000s
Source: IPEA, 2013: 10
A new labour market emerges
Source: RAIS. Elaboração SPI/MP
“We have broken taboos and concepts pre-established by certain economists,
certain sociologists, certain historians. Some truths went out of the window.
First, we proved that it was absolutely possible to grow while distributing
income, that we didn’t have to wait to distribute. Second, we proved that it
was possible to raise wages without inflation. In the last ten years,
organized workers have had a real raise: the minimum wage went up
almost 74% and inflation remained under control. Third, during this decade
we increased our foreign trade and our domestic market without having that
lead to conflict. They used to say it wasn’t possible to enlarge both foreign
and domestic markets at the same time.”
Former President Luiz Inácio Lula da Silva
Thank you!
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