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Determinantes da Produtividade do Trabalho - Classe Média

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Apresentação dos especialistas da SAE, Ricardo Paes de Barros e Diana Grosner, e do professor Roberto Ellery (UNB), sobre "Determinantes da Produtividade do Trabalho para a Estratégia de Sustentabilidade e Promoção da Classe Média". Veja mais na matéria: http://ow.ly/poL9G

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Page 1: Determinantes da Produtividade do Trabalho - Classe Média
Page 2: Determinantes da Produtividade do Trabalho - Classe Média

1CRESCIMENTOINCLUSIVOO FANTÁSTICO PROGRESSO DOS ÚLTIMOS 10 ANOS

Page 3: Determinantes da Produtividade do Trabalho - Classe Média

Renda dos mais pobres cresceu mais

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

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Primeiro Segundo Terceiro Quarto Quinto Sexto Sétimo Oitavo Nono Décimo

Taxa

cre

scim

ento

anu

al m

édia

da

rend

a pe

r cap

ita

(%)

Décimos da distribuição de renda

Taxa de crescimento anual média por décimos da distribuição de renda familiar: Brasil, 2001 a 2011

Fonte: Estimativas da SAE/PR com base nas PNADs de 2001 a 2011.

Média

Page 4: Determinantes da Produtividade do Trabalho - Classe Média

0,25

0,30

0,35

0,40

0,45

0,50

0,55

0,60

0,65

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Co

efi

cie

nte

de

Gin

i

Evolução do grau de desigualdade, Brasil e China: 1981 a 2011

Fonte: 1976-2009 Instituto de Pesquisa Econômica Aplicada (IPEA), médias para anos de 1980,1991,2000; 2011 PNAD de 2011.

China

Brasil

Brasil mais igual, China mais desigual

Page 5: Determinantes da Produtividade do Trabalho - Classe Média

Mais brasileiros compõem a nova classe média

0

10

20

30

40

50

60

70

80

90

100

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Prop

orçã

o da

pop

ulaç

ão (e

m %

)

Gráfico 4: Evolução do tamanho das classes de renda, Brasil: 2002 a 2012

Ascensão à Classe Média (21% da população)

Ascensão da Classe Média à Classe Alta (7% da população)

Fonte: Estimativas da SAE/PR com base na Pesquisa Nacional por Amostra de Domicílios (PNAD).

38%

52%

21%

7%

Classe Alta

Classe Baixa

Classe Média

Page 6: Determinantes da Produtividade do Trabalho - Classe Média

2 COMO ISSOFOI FEITO ?GRANDE PROCESSO DE INCLUSÃO PRODUTIVA

Page 7: Determinantes da Produtividade do Trabalho - Classe Média

50

60

70

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100

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150

160

2001 2011

Rend

a per

capi

ta (R

$/m

ês)

Determinantes do crescimento da renda per capita dos 25% mais pobres Brasil: 2001-2011

Fonte: SAE/PR, com base na PNAD 2001 e 2011.

83%

R$ 82 R$ 82

R$ 151

R$ 90Proporção de adultos: 11%

Renda do trabalho: 52%

Renda não trabalho: 37%

R$ 115

Mais de metade do crescimento veio do trabalho

Page 8: Determinantes da Produtividade do Trabalho - Classe Média

200

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460

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500

520

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600

2001 2011

Rend

a per

capi

ta (R

$/m

ês)

Determinantes do crescimento da renda per capita dos 50% medianos Brasil: 2001-2011

Fonte: SAE/PR, com base na PNAD 2001 e 2011.

55%

R$ 323 R$ 323

R$ 502

R$ 350Proporção de adultos: 15%

Renda do trabalho: 55%

Renda não trabalho: 30%

R$ 405

Mais de metade do crescimento veio do trabalho

Page 9: Determinantes da Produtividade do Trabalho - Classe Média

1500

1550

1600

1650

1700

1750

1800

1850

1900

1950

2000

2001 2011

Rend

a per

capi

ta (R

$/m

ês)

Determinantes do crescimento da renda per capita dos 25% mais ricos Brasil: 2001-2011

Fonte: SAE/PR, com base na PNAD 2001 e 2011.

21%

R$ 1.634 R$ 1.634

Proporção de adultos: 26%

Renda do trabalho: 64%

Renda não trabalho: 10%

R$ 1.758

R$ 1.977

R$ 1.724

Mais de 60% do crescimento veio do trabalho

Page 10: Determinantes da Produtividade do Trabalho - Classe Média

3TRABALHOEM FOCOO QUE ACONTECEU NOMERCADO DE TRABALHO BRASILEIRO?

Page 11: Determinantes da Produtividade do Trabalho - Classe Média

80

85

90

95

100

105

110

115

120

125

130

135

140

145

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Rem

uner

ação

rela

tiva

a de

200

3 (2

003=

100)

Evolução da remuneração média do trabalhoBrasil: 2001-2011

Baixa Qualificação

QualificaçãoMediana

Alta Qualificação

Fonte: Estimativas da SAE/PR com base nas PNADs de 2001 a 2011.

Reflexos da redução da desigualdade no mercado de trabalho

Page 12: Determinantes da Produtividade do Trabalho - Classe Média

40

42

44

46

48

50

52

54

56

58

60

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Prop

orçã

o da

forç

a de

trab

alho

(%)

Evolução dos graus de formalização e informalidade da força de trabalho Brasil: 2001-2011

Informal

Formal

Fonte: Estimativas da SAE/PR com base nas PNADs de 2001 a 2011.

Maior remuneração e maior formalização!

Page 13: Determinantes da Produtividade do Trabalho - Classe Média
Page 14: Determinantes da Produtividade do Trabalho - Classe Média
Page 15: Determinantes da Produtividade do Trabalho - Classe Média

4PRODUTIVIDADEDO TRABALHOO DESCOMPASSO ENTRE A PRODUTIVIDADE E A REMUNERAÇÃO DO TRABALHO

Page 16: Determinantes da Produtividade do Trabalho - Classe Média
Page 17: Determinantes da Produtividade do Trabalho - Classe Média

Foi o aumento da produtividade?

Page 18: Determinantes da Produtividade do Trabalho - Classe Média

5COMO SUSTENTAR O CRESCIMENTO?O BRASIL PRECISA DE UM PROGRAMA SÓLIDO DE PROMOÇÃO DA PRODUTIVIDADE

Page 19: Determinantes da Produtividade do Trabalho - Classe Média

What are we trying to do?

Construction of an analytical framework• To organize and classify in a logically consistent

environment all possible channels leading to improvements in the value of labor productivity

• To catalog available policies, programs and actions that aim to promote labor productivity

Page 20: Determinantes da Produtividade do Trabalho - Classe Média

Why is an analytical framework useful?

To improve the effectiveness of programs aimed to increase productivity, through1. promoting and facilitating better and more intense

use of already available programs2. taking full advantage of existing synergies between

available programs 3. identifying gaps in available programs

Page 21: Determinantes da Produtividade do Trabalho - Classe Média

Which notion of productivity matters?

1. Value of productivity instead of simply physical productivity. Price matters.

2. Labor productivity instead of total factor productivity. Intensity of complementary factors matters.

3. Marginal Labor productivity instead of average labor productivity. Labor intensity matters.

4. Marginal Labor productivity or average labor value added=(p.y-r.k)/L

Page 22: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

Page 23: Determinantes da Produtividade do Trabalho - Classe Média

1Price received by the producer and institutional aspects

Page 24: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

The value of labor productivity depends not only on the amount produced (physical productivity of labor), but also on the unit value (price) of what is produced.

Price differences have two possible explanations:

Differences in what is produced;

Differences in transportation and storage.

Page 25: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

A.1. Increasing product demand Greater willingness to pay Intensive and extensive margins

Each consumer increases his willingness to pay

Expansion in the number of consumers (new markets, institutional barriers, knowledge)

Adequate product design to meet consumer needs (diversification)

Influencing consumer preferences Exploiting economies of scale and

economies of scope

Page 26: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

A.2. Structure of production There is always a variety of goods

that could be produced. The choice of what to produce

determines the manner the available workforce is allocated

It has great influence on the value of labor productivity.

The goal should be to increase the production of goods that add the most to the demand for labor

The ideal is not to produce products with the higher prices since they may also have higher production costs

Page 27: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

A.2. Structure of production The ideal here is to allocate the

workforce to goods with the largest gap labor value added

Who would produce something with lower added-value?

Incomplete information. Secondly, there may be barriers

to entry in certain markets (legal and technological barriers)

Importance of diversification Facilitates adjustments in

production structure Reduces volatility in revenues

Page 28: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

A.3. Losses and inefficiencies in transportation and storage Transportation, storage and marketing

are economic activities that add value (like all others).

Their costs constitute neither losses nor waste, but a way to add value to production.

Part of the gap between the price paid by consumers and the price received by producers are, however, avoidable:

Losses Inefficiencies in transportation and

storage.

Page 29: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

A.4. Unjustified taxes and social contributions on sales Firms use public services that are often

free of charge. It is desirable that firms contribute with

taxes to the public budget. Undoubtedly, these contributions open a

fiscal gap between consumers and producers prices.

Part is perfectly justifiable Used for investment in infrastructure to

support production To finance productive services

Page 30: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

A.4. Unjustified taxes and social contributions on sales Solidary contribution to finance effective

programs aimed to improve living conditions and opportunities of the most vulnerable social groups.

None of these aspects of the fiscal gap constitute a loss that deserves to be eliminated.

The contributions that are used inefficiently or ineffectively, however, represents a deadweight loss that need to be removed.

Page 31: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

Not everything that can be produced should be produced.

The eagerness to make “what is produced” and “how it is produced” socially desirable inevitably leads to unjustifiable costs.

These excesses may result that either socially desirable activities are not pursued or that socially adequate productive practices are not being used.

Page 32: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

Unjustified impediments penalize the value of labor productivity through at least two routes:

Labor force focus on activities that do not have any real economic or social value.

Preclude economically and socially desirable activities from being carried out.

These restrictions and requirements elevate the cost of the relationship between economic agents and the public sector

Page 33: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

A "good" business environment is characterized as a situation in which the relationship among the economic agents and between them and the public sector is not subject to considerable bureaucracy and is based on fair, safe, reliable and clear rules and laws.

Page 34: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

B.1. Elimination of unwarranted barriers to opening and closing business

For promoting economic activity, the easier it is to open and to close companies the better.

Starting and closing a firm encompass a series of responsibilities that must be meticulously considered, documented and carefully fulfilled.

Otherwise, a predictable and unnecessary series of disputes will arise

Page 35: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

B.1. Elimination of unwarranted barriers to opening and closing business

There is no doubt that it is impossible to reconcile justice, predictability, reliability, and safety in the relationship among economic agents and between them and the public sector without a careful and transparent processes to open and close firms.

Excessive legislation and unnecessarily procedures should be avoided

Page 36: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

B.2. Support for new and alternative methods for organizing production

Traditional firms are not the only form of organizing production.

Cooperatives, producer associations and local productive cluster are also relevant production organization

Possible instruments to promote alternative forms of organizing production:

Information Subsidized services

Page 37: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

B.3. Elimination of unwarranted barriers and costs to operating business

There is also intense interaction among economic agents and between them and the public sector throughout the operational period.

Among these interactions, the following are noteworthy: property registration, including patents; tax payment; access to and payment of public services; permits to operate and sell, dispute resolution and legal execution of contracts.

Page 38: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

B.3. Elimination of unwarranted barriers and costs to operating business The most challenging part of regulating

these interactions is achieving an adequate balance between proper regulation and bureaucracy

If these relationships are excessively regulated or bureaucratic

The costs and the time spent in each of the transactions will increase leading to inadequate human resource allocation

Unnecessary rises in production costs may make certain economic activities unfeasible.

Page 39: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

B.3. Elimination of unwarranted barriers and costs to operating business If too much regulation and bureaucracy

have a negative effect, the same is true for defective or insufficient regulation:

Legal uncertainty, Disregard for property rights, and

Nonobservance of contracts and agreements.

Increase the time e costs of solving legal disputes, tying-up productive assets and generating losses for all parties.

Page 40: Determinantes da Produtividade do Trabalho - Classe Média

2Technologyand inputs

Page 41: Determinantes da Produtividade do Trabalho - Classe Média

Estrutura Analítica para a Estratégia de Sustentabilidade da Classe Média via Promoção da Produtividade do Trabalho

Producer Prices

TFP: Institutional Aspects

TFP: Technology

Complementary Inputs

Use of Substituting Inputs

Quality of Workplace

Matching of Workers and Job Posts

LEGAL CONSTRAINTS TO PRODUCTION

Some firms may not use the best available technology due to legal constraints to the technology adoption. That is not to say that all laws that forbids the use of new technologies leads to a bad social choice. Some constraints to technology may lead to a higher level of welfare. However those laws have a productivity effect.

Page 42: Determinantes da Produtividade do Trabalho - Classe Média

Estrutura Analítica para a Estratégia de Sustentabilidade da Classe Média via Promoção da Produtividade do Trabalho

Producer Prices

TFP: Institutional Aspects

TFP: Technology

Complementary Inputs

Use of Substituting Inputs

Quality of Workplace

Matching of Workers and Job Posts

PRODUCTION INEFFICIENCIES

Even if the firm uses the best technology production inefficiences may reduce the productvity. Those inefficiences comes from:

Bad inputs purchaseBad inputs choiceUnderuse of inputs

Competition can be essential for companies to adopt efficient production strategies because it provides adequate incentives for them to be as efficient as possible.

Page 43: Determinantes da Produtividade do Trabalho - Classe Média

Estrutura Analítica para a Estratégia de Sustentabilidade da Classe Média via Promoção da Produtividade do Trabalho

Producer Prices

TFP: Institutional Aspects

TFP: Technology

Complementary Inputs

Use of Substituting Inputs

Quality of Workplace

Matching of Workers and Job Posts

USE OF EXISTING TECHNOLOGIES

Technology does not need to be created tobe used. Productivity gains may come form the use of already known technology. The adoption of existing technologies may require: i) changing the current legislation; ii) eliminating barriers that apply to the protection of intellectual property rights, iii) disseminating information about these technologies,and iv) providing technical assistance to facilitate their adoption and implementation.

Competition does have a major role on technology adoption.

Page 44: Determinantes da Produtividade do Trabalho - Classe Média

Estrutura Analítica para a Estratégia de Sustentabilidade da Classe Média via Promoção da Produtividade do Trabalho

Producer Prices

TFP: Institutional Aspects

TFP: Technology

Complementary Inputs

Use of Substituting Inputs

Quality of Workplace

Matching of Workers and Job Posts

INOVATION AND DEVELOPING OF NEW TECHNOLOGIES

The development of new technologies involves two dimensions:

The first corresponds to the improvement of the production process of a good that is already manufactured. This represents the expansion of the production frontier.

Innovation also affects the value of labor productivity when it involves the incorporation of new goods in theproduction agenda.

Page 45: Determinantes da Produtividade do Trabalho - Classe Média

Estrutura Analítica para a Estratégia de Sustentabilidade da Classe Média via Promoção da Produtividade do Trabalho

Producer Prices

TFP: Institutional Aspects

TFP: Technology

Complementary Inputs

Use of Substituting Inputs

Quallity of Workplace

Matching of Workers and Job Posts

LEGAL CONSTRAINTS TO THE PURCHASE OR USE OF INPUTS

Some inputs are not used in production due to legal constraints. As with legal contraints to technology adoption it may be the case that some of those laws does have a positive welfare inpact. Nonetheles some of those laws reduces labor productivity and does not provides any welfare improvments.

Page 46: Determinantes da Produtividade do Trabalho - Classe Média

Estrutura Analítica para a Estratégia de Sustentabilidade da Classe Média via Promoção da Produtividade do Trabalho

Producer Prices

TFP: Institutional Aspects

TFP: Technology

Complementary Inputs

Use of Substituting Inputs

Quality of Workplace

Matching of Workers and Job Posts

INCREASEOF SUPPLY AND REDUCTION OF INPUT PRICES

Sometimes the use of na input may be contrained by market failures rather than by bad laws and regulations. In such case the use of policys to increase the supply and/or reduce the price of inputs may lead to na increase in produtctivity. Credit contraitns are often pointed as na example of such market failures.

Page 47: Determinantes da Produtividade do Trabalho - Classe Média

Estrutura Analítica para a Estratégia de Sustentabilidade da Classe Média via Promoção da Produtividade do Trabalho

Producer Prices

TFP: Institutional Aspects

TFP: Technology

Complementary Inputs

Use of Substituting Inputs

Quality of Workplace

Matching of Workers and Job Posts

DIVERSIFICATION OF USE OF INPUTS

In the presence of diminishing returns, the greater the diversification of production inputs, the higher the labor productivity. Moreover, a greater diversification in the use of complementary inputs reduces the risk of interrupting the production due tolack of a specific input. While the interruption of the production may not have an effect on the productivity of the hours effectively worked, it has an effect on the productivity of hired labor.

Page 48: Determinantes da Produtividade do Trabalho - Classe Média

Estrutura Analítica para a Estratégia de Sustentabilidade da Classe Média via Promoção da Produtividade do Trabalho

Producer Prices

TFP: Institutional Aspects

TFP: Technology

Complementary Inputs

Use of Substituting Inputs

Quality of Workplace

Matching of Workers and Job Posts

LEGAL CONSTRAINTS TO THE PURCHASE OR USE OF INPUTS

When the use of a given input reduces labor productivity, there is often interest of workers to impose restrictions on that input. The case of the use of foreign labor is classic, but not unique. Sometimes, some equipment and machines are not introduced,despite their economic viability, for fear that they will replace manpower,reducing demand and labor productivity, or contributing to the generation of unemployment.

Page 49: Determinantes da Produtividade do Trabalho - Classe Média

Estrutura Analítica para a Estratégia de Sustentabilidade da Classe Média via Promoção da Produtividade do Trabalho

Producer Prices

TFP: Institutional Aspects

TFP: Technology

Complementary Inputs

Use of Substituting Inputs

Quality of Workplace

Matching of Workers and Job Posts

REDUCTION OF SUPPLY AND INCREASE IN INPUTS PRICES

The greater the scarcity of the input, and thus the more restricted its supply, the greater should be its market price and thus the lower is its use by businesses. If the input is a substitute to labor, reductions in its use will lead to increases in demand and labor productivity.

Page 50: Determinantes da Produtividade do Trabalho - Classe Média

3Quality of the Labor Force and Matching

Page 51: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

F.1. Formal education Reasons why education should increase

labor productivity. 1. More education implies more

knowledge. Capability of performing a

wider range of activities Takes less time and tends to

perform each activity more accurately.

2. Better able to learn new activities and more easily incorporate management or production techniques.

Page 52: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

F.1. Formal education Reasons why education should increase

labor productivity. 3. Greater ability to process

information. Thus, education is associated with the ability to make better decisions, particularly in volatile environment or one that is in rapid transition.

The importance of the quality of education.

Page 53: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

F.2. Professional training

Training is essential for building an effective bridge between general education and the specifics of a given occupation.

It is very important to recognize the difference and the complementarity between the initial training and its continuing counterpart.

Initial training serves as the first bridge between theory and practice. It is what promotes a successful transition to work.

Page 54: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

F.2. Professional training In a dynamic world, production

techniques are not static. In this environment, it is of fundamental

importance to ensure that workers have access to continuous training allowing permanent upgrade of skills.

Training promotes Productivity on the current job Access to better jobs

Complementarity between different forms of knowledge. The impact of training should be greater the higher the higher the formal education level of the workforce.

Page 55: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

F.4. Experience in the firm and in the labor market How to make it better and more

quickly, accurately and with greater quality can not always be obtained in training courses.

Experience may be essential. In many cases, it is only possible to learn by doing it.

Experience increases more the productivity of workers that remain in the same firm and occupation, than the productivity of those who move to another firm or occupation.

Page 56: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

G.1. Frictional unemployment To have a well trained work force

and quality jobs is useless if one doesn’t know about each others existence: so the job remains vacant and the worker remains unemployed.

Desired elimination of information asymmetries.

Desired efforts to reduce the duration of frictional unemployment, not only its incidence. What matters for productivity is how many workers are idle, and for how long they remain so.

Page 57: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

G.2. Unemployment due to mismatch This means again unexploited labor

and jobs. Problem here is less a problem of

information asymmetries but rather a problem of workers that are not fitted to existing jobs.

May require retraining or the re-ordering of activities.

Large vocational training initiatives in order to meet the demands of the labor market.

Incentives for firms to favor jobs that value the skills already held by the workforce.

Page 58: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

G.3. Adequacy of professional training to production needs Adequacy of professional training to

production needs must always be pursued, even in the absence of unemployment by mismatch.

Unemployment by mismatch reflects only one acute stage in the process.

There can be a long way between unsuited workforce employment and job separation, with severe costs to productivity.

Continuous training prevents layoffs and ensures better productivity level.

Page 59: Determinantes da Produtividade do Trabalho - Classe Média

Analytical Framework for the sustainability of the middle class through promotion of labor productivity

A. Price at the producer

B. Institutional Aspects

C. Technology

D. Complementary inputs

E. Substitute inputs

F. Quality of the Labor Force

G. Matching of workers and jobs

G.4. Adequacy of the matching between workers and jobs Workers and and jobs are

heterogeneous. Allocation matters. If work is performed by those who

are most qualified for the activity at hand, productivity as a whole will be higher.

Desired information and incentives for more efficient allocation.