Unions and the Labor Market in Brazil
IPEA-World Bank Brazil Jobs Report, 2002
36 Pages Posted: 15 May 2002
Date Written: July 2001
This paper analyzes the effect of unions on the labor market in Brazil and attempts to answer the following questions: How do labor laws and union legislation affect collective bargaining processes? Do unions influence wage formation and income distribution? Do unions increase labor market rigidity? We find evidence that institutions are fundamental in explaining the behavior of unions, their effects on income distribution and macroeconomic stability, and the current state of development of collective bargaining in Brazil. The paper concludes with some recommendations for enhancing the role of unions and collective bargaining processes.
Keywords: Strategic default, Overinvestment, Debt contract, Monitoring costs
JEL Classification: J51, J31
Suggested Citation: Suggested Citation