Spatial reorganization of Brazilian transformation industry post 2008: formal employment trends

Abstract

This paper aims to analyze the distribution of Brazilian industrial employment across the territory after 2008, linking the observed transformations to locational factors. Its contribution resides in the characterization of the industrial employment in connection with the capacity of individuals and firms to benefit from certain localities, identified as determinants of the observed changes. Since the 1990s, Brazil has experienced a reorganization of its productive structure, in which its spatial distribution became more connected to the external market and more demanding of labor qualification. In this sense, the sectorial and educational analysis suggests a greater deconcentration of productive activity in lower quality employment, with a greater dispersion of sectors of lower technological intensity and jobs with lower levels of education. Given the strong correlation between the sector's technological intensity and the worker’s level of education, it is possible to reinforce the Southeast region performance, especially the state of São Paulo, in terms of job creation for masters and doctors and in sectors more intensive in technology. In addition to the sectoral question, the data also suggests a possible productive transformation toward lower labor costs.