Unions and the Labor Market in Brazil

IPEA-World Bank Brazil Jobs Report, 2002

36 Pages Posted: 15 May 2002

See all articles by Jorge Arbache

Jorge Arbache

Development Bank of Latin America - CAF

Date Written: July 2001

Abstract

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

Arbache, Jorge, Unions and the Labor Market in Brazil (July 2001). IPEA-World Bank Brazil Jobs Report, 2002, Available at SSRN: https://ssrn.com/abstract=308564 or http://dx.doi.org/10.2139/ssrn.308564

Jorge Arbache (Contact Author)

Development Bank of Latin America - CAF ( email )

Av Canaval Moreyra 380
Lima, Lima
Peru
+ 55 61 98194 4529 (Phone)

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