Master's – Distribution, productive structure and aggregate demand in Brazil: a Kaleckian inpired analyses

Tipo de evento: 
Data e hora: 
18/06/2019 - 13:30 to 16:30


Clara Zanon Brenck

Master's – Distribution, productive structure and aggregate demand in Brazil: a Kaleckian inpired analyses

Advisor: Profª. Drª. Laura Barbosa de Carvalho

Comission: Profs. Drs. Fernando Monteiro Rugitsky, Pedro Mendes Loureiro and Nelson Henrique Barbosa Filho

 Class: 217, FEA-5


 Central to the debate regarding increase in the income concentration between the 1960s and 1970s in Brazil, the role of the productive structure in the determination of wage distribution has been relegated to second place in the economic literature of the last decades. By rescuing these elements to analyze the relationship between the reduction of wage inequality and changes in the composition of employment in Brazil in the recent period, we contribute to the theoretical and empirical literature on the relationship between income distribution and aggregate demand. Basing this analysis on the neo-Kaleckian framework, we contribute to the theoretical literature by constructing an open economy model of two sectors that incorporates the effect of wage inequality on the household consumption pattern. The results reveal the conditions for the emergence of a circular process of cumulative causation between the fall of the wage inequality and the transfer of jobs to the non-tradable sector, intensive in less qualified labor. The empirical chapter of this dissertation econometrically tests the existence of this cumulative mechanism in Brazil, separating it into two exercises: an Error Correction Vector (VEC) for the long-term relationship between product composition and Gini index between 1980 and 2014 and an Autoregressive Vector (VAR) for the short-run relationship between changes in wage inequality and employment composition in the period between 2004 and 2019. The results seem to confirm the hypothesis that changes in the productive structure and income distribution were reinforced over time

*Abstract provided by the author



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