Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 2036
In an international framework favourable to the performance of the Brazilian economy, the increase in the minimum wage and the formalization of labour contracts boosted GDP growth, increasing consumption growth with the incorporation of part of the low-income people to the market. The global crisis that threatens the improvement of the socioeconomic condition of the Brazilians requires more public action to articulate public and private investments and to improve the regulation of wage labour. The improvement in the regulation of paid work is required for a higher GDP growth rate with higher investment and productivity growth, reducing the elasticity of employment and increasing the proportion of skilled paid occupations does not provoke increased relative dispersion of incomes work.
Brazilian economy labour market minimum wage public policy