- Brazil’s low productivity is systemic
The study concludes that per capita income is strongly correlated with total productivity and sector productivity. Out of the countries that were examined, the most productive is the United States (six times more productive than Brazil), followed by Ireland, France, Canada and Australia. Brazil was found to be less productive than developed countries and also less productive on average than countries with similar per capita income. The study helps to explain Brazil’s low productivity, showing that the allocation of employment in unproductive sectors is important, but not as much as low productivity in different sectors. Although there are potential gains from reallocating workers to more productive sectors, Brazil’s overall low productivity mainly results from the low productivity of each of its sectors. In other words, it is a systemic problem that is not associated with specific sectors.