THE EVOLUTION OF WAGES IN THE TOWNS OF CARAÍ AND TEÓFILO OTONI, NORTHEASTERN REGION OF THE STATE OF MINAS GERAIS, BETWEEN 2000 AND 2010

  • Alexandre Sylvio Vieira da Costa UFVJM
Keywords: Family Allowance, Inflation, Poverty

Abstract

Current research evaluates the economical evolution of the towns of Caraí and Teófilo Otoni in the northeastern region of Minas Gerais, Brazil. In Caraí, the per capita wage difference of the 20% poorest compared to that of the 20% richest increased 47.5% between 2000 and 2010, whereas it decreased 20.9% in Teófilo Otoni. There were greater increases in per capita wages in Teófilo Otoni in the lowest wage brackets. Losses in all segments occurred when minimum wages and inflation rates were corrected. Losses among the lowest wage groups varied between 51.75% and 64.59% for Caraí and between 7.75% and 32.30% for Teófilo Otoni. Private investments in Teófilo Otoni produced employment with reduced wages but rates were significantly corrected due to real increase in minimum wages. Almost half the population in Caraí depends on the government family allowance, with non-corrected rates coupled to inflation or correction of minimum wage between 2003 and 2010 with decrease in mean wage.

Author Biography

Alexandre Sylvio Vieira da Costa, UFVJM
Eng. Agrônomo; Docente Adjunto A Universidade Federal dos Vales do Jequitinhonha e Mucuri - Campus JK, UFVJM, Brasil.
Published
2016-02-10
Section
Artigos Originais