Government wage policy in Brazil directly impacts bargaining outcomes, study finds.
The government's wage policy in Brazil affects how wages are negotiated. Even though unions have more power now, the government's minimum wage adjustments still play a role. By analyzing wage bargaining models, researchers found that the official wage set by the government influences the final negotiated wage. In most cases, when the official wage goes up, the negotiated wage also increases. This shows that government wage policies still matter in Brazil, even with more union involvement in setting wages.