Development Strategies And Income Distribution In Brazil: A Sectoral Analysis

Abstract

Utilizing a multisectoral model of the Brazilian economy, this paper analyzes the income distribution consequences of expanded production in 123 different sectors of the economy. The results indicate relatively little variation in distributive performance by sector. This suggests that the most important determinant of Brazil’s severe income inequality is not the sectoral composition of production, but the relatively weak bargaining power of unskilled workers vis-à-vis- capital.