Tertiary Activities and Informality: Quantitative Importance and Interconnections within the Economy in Brazil

22 Pages Posted: 5 May 2011

See all articles by Carlos Roberto Azzoni

Carlos Roberto Azzoni

University of São Paulo (USP) - Department of Economics

Joaquim Guilhoto

University of Sao Paulo; Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI)

Date Written: April 22, 2010

Abstract

This paper studies the importance of the Tertiary sector and the informal sector for the Brazilian economy, making an interconnection between them and with them and the rest of the economy and the formal sector. To do so, this work makes use of the data presented in the System of National Accounts and the National Survey of Households (PNAD), both from IBGE, and the Leontief model. The results show: a) the importance of the Tertiary sector for the Brazilian economy in terms of employment (around 61% of the occupied persons), and income generation (around 67% of the economy Value Added); b) the high share of the informal sector in the Brazilian economy (around 58% of the occupied persons and 34% of the income); c) the combination of these factors results in an economy with low wages and salaries and with an high concentration of income; and d) that the present productive structure of the Brazilian economy contributes to the concentration of income in the country.

Keywords: Tertiary sector, employment

JEL Classification: R15, R23

Suggested Citation

Azzoni, Carlos Roberto and Guilhoto, Joaquim José Martins and Guilhoto, Joaquim José Martins, Tertiary Activities and Informality: Quantitative Importance and Interconnections within the Economy in Brazil (April 22, 2010). Available at SSRN: https://ssrn.com/abstract=1830392 or http://dx.doi.org/10.2139/ssrn.1830392

Carlos Roberto Azzoni

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo SP, 05508-900
Brazil
+55 11 818-5870 (Phone)
+55 11 813-4743 (Fax)

Joaquim José Martins Guilhoto (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI) ( email )

Paris
France

University of Sao Paulo ( email )

Av. Prof. Luciano Gualberto, 908
FEA2
Sao Paulo, 05508-010
Brazil
+ 55 011 3091-5870 (Phone)
+ 55 011 3813-4743 (Fax)

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