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Productivity, Wages, and Labor Politics in Brazil, 1945–1962

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  • Colistete, Renato P.

Abstract

After World War II Brazil experienced exceptionally high economic growth, ranking tenth among the largest economies by 1960. Yet evidence shows that real wages lagged far behind productivity, especially from 1956, the heyday of “developmentalism”—an economic ideology aimed at state-led, accelerated industrialization, with foreign and domestic private capital as active partners. The outcome diverged from that of the “social compact for growth,” the cornerstone of the “golden age” in Europe and Japan. A key reason was that in Brazil left-wingers controlled the main trade unions and pushed an agenda of social reform that was widely rejected by industrialists.

Suggested Citation

  • Colistete, Renato P., 2007. "Productivity, Wages, and Labor Politics in Brazil, 1945–1962," The Journal of Economic History, Cambridge University Press, vol. 67(1), pages 93-127, March.
    • Handle: RePEc:cup:jechis:v:67:y:2007:i:01:p:93-127_00
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    Cited by:

    1. Pedro H. G. Ferreira de Souza, 2018. "A history of inequality: top incomes in Brazil, 1926–2015," Working Papers 167, International Policy Centre for Inclusive Growth.
    2. Ornelas, Emanuel & Ogeda, Pedro & Soares, Rodrigo, 2021. "Labor Unions and the Electoral Consequences of Trade Liberalization," CEPR Discussion Papers 16721, C.E.P.R. Discussion Papers.
    3. Bengtsson, Erik & Waldenström, Daniel, 2018. "Capital Shares and Income Inequality: Evidence from the Long Run," The Journal of Economic History, Cambridge University Press, vol. 78(3), pages 712-743, September.
    4. Eduardo Bastian & Fabio Sá Earp, 2012. "Fighting inflation in Brazil, 1958-67: an economic and political view of the gradualist stabilisation plans," Working Papers 12019, Economic History Society.
    5. Agrizzi, D. & Sian, S., 2015. "Artificial corporatism: A portal to power for accountants in Brazil," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 27(C), pages 56-72.
    6. Paidipaty, Poornima & Ramos Pinto, Pedro, 2021. "Revisiting the “Great Levelling”: the limits of Piketty’s Capital and Ideology for understanding the rise of late 20th century inequality," LSE Research Online Documents on Economics 110941, London School of Economics and Political Science, LSE Library.
    7. Pedro Fandiño, 2022. "The role of social conventions on wage inequality: the Brazilian trajectory and the missed “Great Leveling”," Review of Evolutionary Political Economy, Springer, vol. 3(2), pages 435-455, July.

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