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.