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Economic Inequality and Political Power: A Comparative Analysis of Argentina and Brazil
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18
Reduction of both total employment and salaries earned in the utilities sector
demonstrates the impact of the privatization of this sector that accompanied implementation of the Washington Consensus. The total number of jobs in this sector dropped by 20 percent, and wages earned also dropped, by more than 9 percent.
Finally, wage and job participation are stable in the manufacturing sector during this
period. The sector employed just under 20 percent of the Brazilian workforce and paid 1.1 times the country’s average wage in both 1996 and 2003.
Inequality among Regions
Figure 11: Inequality by Region
Source: Authors’ calculations based on IBGE data.
Inequality by region was generally increasing from 1996 until 2001, after which regional inequality returned to 1999 levels, as shown in Figure 11. Changes in regional inequality in Brazil are closely tied to changes in the relative position of Sao Paulo; when its relative contribution increases, overall inequality increases, and vice versa.
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| | Authors: Galbraith, James., Spagnolo, Laura. and Pinto, Sergio. |
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18
Reduction of both total employment and salaries earned in the utilities sector
demonstrates the impact of the privatization of this sector that accompanied implementation
of the Washington Consensus. The total number of jobs in this sector dropped by 20
percent, and wages earned also dropped, by more than 9 percent.
Finally, wage and job participation are stable in the manufacturing sector during this
period. The sector employed just under 20 percent of the Brazilian workforce and paid 1.1
times the country’s average wage in both 1996 and 2003.
Inequality among Regions
Figure 11: Inequality by Region
Source: Authors’ calculations based on IBGE data.
Inequality by region was generally increasing from 1996 until 2001, after which regional
inequality returned to 1999 levels, as shown in Figure 11. Changes in regional inequality in
Brazil are closely tied to changes in the relative position of Sao Paulo; when its relative
contribution increases, overall inequality increases, and vice versa.
0.03
0.04
0.05
1996
1997
1998
1999
2000
2001
2002
2003
T
h
ei
l
'
s T
S
t
at
i
s
t
i
c
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