The Case of Brazil
Edited by Werner Baer
Chapter 5: Labor Policies in Brazil
Márcia Azanha Ferraz Dias de Moraes, Fabíola Cristina Ribeiro de Oliveira and Camila Kraide Kretzmann
5. Labor policies in Brazil Márcia Azanha Ferraz Dias de Moraes, Fabíola Cristina Ribeiro de Oliveira and Camila Kraide Kretzmann 5.1 INTRODUCTION Despite modernization and rapid economic growth in many developing countries, including Brazil, unemployment remains a serious problem. Technological changes have altered the profile of the workers that a company needs. Employees with higher levels of schooling, and who are more capable of undertaking the required training courses for the improvement of their skills, are favored over low-skilled workers, who are excluded and subsequently find it more difficult to access the work market. This, in turn, leads to inequalities in terms of salaries and wages. Policies in different sectors of the Brazilian economy are expected to diminish the problem. According to Moura and Marinho (2002), labor and employment policies can be split into two groups, namely, passive and active. Passive policies seek to reduce the number of people unemployed. This can be done either by workers retiring sooner or by delaying the entry of young people into the job market and encouraging them to stay longer at school. This type of policy has not been widely used in Brazil, given the country’s fiscal situation. Active policies seek to increase the actual number of jobs. This can be done by using incentives (creating public sector jobs; subsidizing employment for young people or the unemployed; supplying credit and support for small businesses; incentives for sectors that make intense use of labor), or by training and qualifying workers and intermediating...
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