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

Vol. 18 No. 4 (1998)

Oct-Dec / 1998
Published October 1, 1998
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Machado, Ana Flávia, and Danielle Carusi Machado. 1998. “Analysis of Two Sectors in the Labor Market: Effects of the Real Plan”. Brazilian Journal of Political Economy 18 (4):612-22.

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

Ana Flávia Machado
Professora do Departamento de Economia da Faculdade de Ciências Econômicas da Universidade de Minas Gerais – FACE.
Danielle Carusi Machado
Mestranda do Instituto de Economia da Universidade Federal do Rio de Janeiro – IE-UFRJ, Rio de Janeiro/RJ, Brasil.
Brazilian Journal of Political Economy, Vol. 18 No. 4 (1998), Oct-Dec / 1998, Pages 612-622


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