IDEAS home Printed from https://ideas.repec.org/a/ags/revi24/340982.html
   My bibliography  Save this article

Increasing labor income and real unit labor costs in Brazilian agrobusiness

Author

Listed:
  • Castro, Nicole Rennó
  • Barros, Geraldo Sant’Ana de Camargo

Abstract

This study analyzes the interactions between per worker labor income (PWLI), labor productivity, real unit labor costs, and the relationship between relevant employee (IPCA) and employers (GDP deflators) prices, specifically focusing on Brazilian agrobusiness. For that purpose, labor productivities of the entire agrobusiness sector and its segments were calculated from 2004 through 2015. We found that the gap between agrobusiness sector deflators and the IPCA did not play a preponderant role to mitigate the effect of PWLI growth of 3.81% annually on real unit labor cost (CURT), which only increased 0.21% annually. In turn, CURT was contained by productivity gains, boosted mainly by agriculture. Without this productivity growth, CURT would have increased at 3.7% annually, thus making unviable the observed simultaneous gains for employers and employees in the Brazilian agrobusiness sector. The result for the primary agrobusiness segment should be highlighted. Even with an annual increase of 4.07% in PWLI, the 7.24% annual growth in productivity implied on an average annual reduction in CURT (-2.56%); without this significant productivity growth, the same increase in PWLI would have boosted CURT by 4.7% annually.

Suggested Citation

  • Castro, Nicole Rennó & Barros, Geraldo Sant’Ana de Camargo, 2022. "Increasing labor income and real unit labor costs in Brazilian agrobusiness," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 60(2), January.
    • Handle: RePEc:ags:revi24:340982
    DOI: 10.22004/ag.econ.340982
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/340982/files/Nicole%20Renn%C3%B3%20Castro.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.340982?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gabriel Coelho Squeff, 2012. "Desindustrialização: Luzes e Sombras no Debate Brasileiro," Discussion Papers 1747, Instituto de Pesquisa Econômica Aplicada - IPEA.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Castro, Nicole Rennó & Barros, Geraldo Sant’Ana de Camargo & Almeida, Alexandre Nunes & Gilio, Leandro & Morais, Ana Carolina de Paula, 2020. "The Brazilian agribusiness labor market: measurement, characterization and analysis of income differentials," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 58(1), January.

    More about this item

    Keywords

    Agribusiness; Labor and Human Capital;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:revi24:340982. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/inrapfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.