Abstract

This article deals with the political debate concerning the Brazilian wage legislation
during the second semester of 1983. It explores the reasons behind proposals based on
full price indexation but suggests that measures that maintain the level of real mean wages
during periods of wage readjustment are a realistic first step in a policy aimed at real wage
recuperation in a nonrecessionary environment. The article discusses some mechanisms of
real average wage maintenance, including a sliding scale of readjustments not based on fixed
adjustment periods. Complementary measures dealing with price controls and broader macroeconomic
policies are discussed in closing.

JEL Classification: J31; J33.