CEPAL Review

Cepal Review is the leading journal for the study of economic and social development issues in Latin America and the Caribbean. Edited by the Economic Commission for Latin America, each issue focuses on economic trends, industrialization, income distribution, technological development and monetary systems, as well as the implementation of economic reform and transfer of technology. Written in English and Spanish (Revista de la Cepal), each tri-annual issue offers approximately 12 studies and essays undertaken by authoritative experts or gathered from conference proceedings.

English Spanish

Regional integration and the labour market: The Brazilian case

Brazil is currently engaged in various trade negotiations. One of the aspects that must be taken into account when appraising these negotiations is their impact on employment. This article estimates the effects on employment of two of the main trade agreements in which Brazil may participate, based on the labour content of its trade, by the workers? skill level. Brazil is a net exporter of labour, especially less skilled labour. Our results show that, in the three alternatives considered here—the agreement between MERCOSUR and the European Union; the Free Trade Area of the Americas (FTAA), and the entry in force of both of them? nearly 230,000 jobs would be generated, representing an increase of 0.4% in Brazilian total employment. In aggregate terms, FTAA is the option which would generate more jobs. The workers benefiting most from these agreements would be those with the lowest levels of skills.

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