Analysis of two sectors in the labor market: effects of the Real Plan

Ana Machado and Danielle Carusi Machado ()

Brazilian Journal of Political Economy, 1998, vol. 18, issue 4, 612-622

Abstract: Brazilian government economic plan named "Real" affected the tradable and non-tradable sectors labor market in different ways. The exchange policy and the free-market oriented process adopted provoked changes in relative prices in favour of the non-tradable sector. This article shows the increasing of the labor force in this sector and a reduction of the gap between tradable and non-tradable sector income. Furthermore, it shows the improving in labor force poverty indicators, specially those related to the informal sector. This article is based on data from PME-IBGE (metropolitan region of São Paulo, 1994, 1995 and 1996). JEL Classification: J21; J80.

Keywords: Occupation; wage differentials; poverty; Real Plan (search for similar items in EconPapers)
Date: 1998
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