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date: 29 February 2020

Abstract and Keywords

After presenting general facts concerning the evolution of the labor market in Brazil over the 2004–2014 decade, this chapter documents the outstanding formalization process that took place, as well as its main consequences and driving forces. In this period, the Brazilian economy achieved sizable GDP growth rates. Although far below Chinese or Indian performances, in contrast to the experiences of the latter, Brazilian growth was notable for being (re)distributive (i.e. associated with important reductions in inequality). In particular, the new growth path was accompanied by a sustained expansion in formal employment, an increase in labor incomes, particularly of earnings at the bottom end of wage distribution, and a consistent decline in wage inequality. Thus, the chapter discusses some of the interventions that led to these achievements and the challenges now faced if these achievements are to be preserved or built upon.

Keywords: Brazil, labor market, formal employment, inequality, GDP, growth, wage distribution

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