THREE HYPOTHESES ON THE BRAZILIAN SERVICE SECTOR

Renato G. Flöres and Samuel C. Dos Santos

Review of Income and Wealth, 1995, vol. 41, issue 2, 207-219

Abstract: Three hypotheses on services, the Gershuny effect, the externalisation of producers services and the macroeconomic equation for the services share in employment, are tested with Brazilian data. The first two show trends similar to those in the developed economies, but, in the last one, findings are affected by consideration of the underground economy. The results suggest a dual character for Brazilian services: an informal, labour intensive group of sectors, present in the large metropolitan areas, coexists with a formal, less labour intensive one, where producers' services are probably predominant. These groups will respond differently to a greater trade liberalisation.

Date: 1995
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