Mark A. Dutz

Brazil enters the election year 2018 with an economy that is gradually recovering from the deepest recession in its recent economic history. However, for many Brazilians, the recovery has not yet translated into new and better jobs, or rising incomes. This book is motivated by the need to understand the possible drivers of future income and employment growth. Its key finding: Brazil needs to dramatically improve its performance in terms of productivity if the country is to generate lasting gains in incomes and provide better jobs for its citizens. This is all the more important, because Brazil is aging rapidly and the boost the country has enjoyed thanks to its young and growing labor force in the past three decades will disappear in just a few years’ time.

Brazil approaches its 2018 election with an economy that is gradually recovering from the deepest recession in its recent economic history. However, for many Brazilians, the recovery has not yet translated into new and better jobs, or rising incomes. This book explores the drivers of future employment and income growth. Its key finding: Brazil needs to dramatically improve its performance across all industries in terms of productivity if the country is to provide better jobs for its citizens and generate lasting gains in incomes growth for all. This is particularly important as Brazil is aging rapidly and the boost the country has enjoyed thanks to its young and growing labor force in the past decades will disappear in just a few years time. The book recommends a change in the relationship between the state and business, from rewarding privileged incumbents to fostering competition and innovation together with supporting workers and firms to adjust to the demands of the market. The book is addressed to all scholars and students of Brazil s economy, especially those interested in why the country s economic performance has not kept up with earlier achievements since the reintroduction of democracy in the mid-1980s. Its conclusions are urgent and pertinent but also optimistic. With the right policy mix, Brazil could enter the third century of its independence in 2022 well on track to join the ranks of high income countries.

This book summarises new research on the impact of digital technology adoption on lower-skilled workers. Country studies on Argentina, Chile, Colombia, and Mexico find inclusive growth due to theincreased productivity and the resulting output effects on lower-skilled jobs.