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Abstract

An important indicator of the performance of any economy is the productivity and the connections between the labour market and the sectoral distribution of profit. Despite the restrictions inherent in the use of different concepts of productivity, Kaldor and Verdoorn have undertaken a serious verification of some relationship between production, employment and productivity, in an attempt to explain the dynamics of inter-regional and inter-sectoral economies, resulting in the designation of the so-called Kaldor-Verdoorn Law. The model for such a law asks questions about the relationship between the growth of labour productivity and product growth, throwing up scale indices of impact and return, in particular applicable to the industrial sector. The main theoretical bases of the model have been developed in this article, with empirical applications to the fields of GDP, employment and added value in the Brazilian economy, and the assertions maintained by Kaldor and Verdoorn in their estimates of the elasticities obtained have been proven. In general, an incipient alteration of the structure of sectoral employment was observed, except in the case of the service sector, which offered, on a scale of 1 – 100, a change of 31, and thus a labour market structure with a notable internal modification.

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