Trade and Factor Market Distortions: Effects on Employment in Brazil
Jose L. Carvalho and
Claudio L. S. Haddad
Chapter 27 in Human Resources, Employment and Development, 1983, pp 405-428 from Palgrave Macmillan
Abstract:
Abstract The impact of trade policies on labour absorption depends on how those policies affect the relative price of the final products or the relative price of the factors of production. It also depends on the factor market conditions with respect to competition. Since distortions in the factor markets can invalidate the predictions advanced by the HeckscherOhlin theorem and mitigate the effects of commercial policies on factor use, it is instructive to analyse these markets, giving special emphasis to distortions and their effects on relative factor prices and uses.In this paper, we shall describe the main distortions in the factor markets in Brazil and their possible effects on factor use in view of Brazil’s trade structure.
Keywords: Minimum Wage; Real Interest Rate; Capital Good; Labour Requirement; Relative Factor Price (search for similar items in EconPapers)
Date: 1983
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Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-22741-9_27
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DOI: 10.1007/978-1-349-22741-9_27
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