The Brazilian distributive conflict in the early 21st century and the role of the foreign sector

Autor(es)

João P.C. Santoro ^[1] ; Lilian N. Rolim ^[2]

Afiliação do(s) autor(es)

^[1] Universidade Estadual de Campinas - Brasil

^[2] Universidade Estadual de Campinas - Brasil

• Tipo de documento: Artigo Científico
• Fonte: Investigación económica; v. 82, n. 325, p. 125-148, 2023-11-24.

Resumo

ABSTRACT The first two decades of the 21stcentury in Brazil were characterized by an increase in the wage share, which was largely associated with the higher workers’ bargaining power that resulted from institutional changes and lower unemployment. We show that the foreign sector also played a key role in this process and explore how its effects on the domestic income distribution changed over the years. We highlight the importance of the industry and, in particular, the manufacturing sector to the higher wage share. At the beginning of the period the depreciated domestic currency did not compromise the profit share due to the low bargaining power of workers, while during the years of appreciated domestic currency the distributive conflict was attenuated. Yet, the currency depreciation after 2011 occurred in an economic structure more dependent on imports and with high workers’ bargaining power, thus pressuring downwards profit margins. (AU)

• Processo FAPESP: 18/21762-0 - Desigualdade de renda, atividade econômica e instrumentos de política econômica: uma abordagem pós-keynesiana
• Beneficiário: Lílian Nogueira Rolim
• Modalidade de apoio: Bolsas no Brasil - Doutorado
• Processo FAPESP: 19/22413-1 - Políticas econômicas, distribuição de renda e atividade econômica: um modelo baseado em agentes para uma economia aberta
• Beneficiário: Lílian Nogueira Rolim
• Modalidade de apoio: Bolsas no Exterior - Estágio de Pesquisa - Doutorado