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Increasing labor income and real unit labor costs in Brazilian agrobusiness

Bibliographic Data

ID4010756
AuthorsNicole Rennó Castro (0000-0003-4768-8976, Federal University of São João del-Rei), Geraldo Sant''Ana De Camargo Barros (0000-0002-2452-850X, Universidade de São Paulo)
Year2022
Volume60
Issue2
Publication date2022-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueRevista de Economia e Sociologia Rural (JOURNAL)
Journal identifiersISSN: 0103-2003 • E-ISSN: 1806-9479
PublisherFapUNIFESP (SciELO) (PUBLISHER)
DOI10.1590/1806-9479.2021.233852
OpenAlexW3193611910
SCIELO_PIDS0103-20032022000200205
LanguageEN
Citations received2
References cited8

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

Agricultural economics · Agriculture · Economic growth · Economics · Geography · Labor cost · Labor demand · Labour economics · Macroeconomics · Production (economics) · Productivity · Real wages · Unit (ring theory) · Wage · Agricultural and Food Sciences · Rural Development and Agriculture · Urban Development and Societal Issues

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Unique citing works2
Citations per year2
Citation span2025 - 2025 (1)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 2

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