Wages, Demand and Labour Productivity in the Brazilian Economy Between 2004 and 2013
Abstract
The aim of this article is to analyse the cumulative impacts of wage growth on the growth of demand and labour productivity in the Brazilian economy from 2004 to 2013. To achieve this aim, a dynamic panel data model is utilised based on sectoral data. The results indicate that the expansion of demand has increased the growth of labour productivity. In turn, productivity was not directly affected by the growth of real wages. The joint expansion of demand and wages had little effect on productivity growth, despite increasing the wage share, reducing wage inequality, and generating a significant volume of employment.
Fields of Study & Subjects
Economic Theory and Policy
Labor market dynamics and wage inequality
Economic Growth and Productivity
Publication details
- Journal / source
- Review of Political Economy
- Volume
- 38
- Issue
- sup1
- Pages
- 72–94
- Publication date
- 27 January 2026
- Language
- EN