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The report analyzes the relationship between transport infrastructure and employment in Brazil from 1990 to 2019. Using a 'market access' methodology, it finds that increased connectivity positively impacts employment, particularly in poorer and more isolated regions, thereby potentially reducing regional inequality. The study highlights that tradable sectors, such as agriculture and manufacturing, benefit most from these improvements.

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  • Increased market access has a statistically significant positive impact on employment in Brazil. Based on Ordinary Least Squares (OLS) estimates, the elasticity is between 0.7 and 0.8, while Instrumental Variables (IV) estimates place it around 0.5, meaning a 1% increase in market access leads to a 0.5% to 0.8% increase in employment.
  • The positive effects of transport infrastructure are heterogeneous across different regions. Municipalities that are initially smaller, poorer, and more isolated experience stronger employment growth from improvements in accessibility, suggesting that such investments can reduce regional inequality.
  • Employment gains from improved accessibility are primarily driven by the growth of tradable sectors, specifically agriculture and manufacturing. Approximately 40% of the jobs created due to improved accessibility occur within these tradable sectors.
  • The number of firms is more sensitive to market access than formal employment alone. OLS estimates show an elasticity of approximately 1, while IV estimates are around 0.8, suggesting that a 10% increase in market access generates an 8% to 10% increase in the number of firms.
  • The Brazilian transport matrix remains heavily concentrated in road transport (67.6%), while railways account for 21.5% and the aquaviary sector 9.5%. Road transport is significantly more expensive, costing approximately 2.5 times more than aquaviary and 6.4 times more than rail transport per ton per 1,000 km.

Cite the original document

APA
Bragança, A., Assunção, J., Rafael, A., & Magalhães, M. (2022). INFRAESTRUTURA DE TRANSPORTE E EMPREGO. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/03/Infraestrutura-transporte-emprego.pdf
Chicago
Bragança, Arthur, Juliano Assunção, Araujo Rafael, and Manuela Magalhães. INFRAESTRUTURA DE TRANSPORTE E EMPREGO. Climate Policy Initiative, 2022. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/03/Infraestrutura-transporte-emprego.pdf.
Wikipedia
{{cite report |last1=Bragança |first1=Arthur |last2=Assunção |first2=Juliano |last3=Rafael |first3=Araujo |last4=Magalhães |first4=Manuela |title=INFRAESTRUTURA DE TRANSPORTE E EMPREGO |publisher=Climate Policy Initiative |date=March 2022 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/03/Infraestrutura-transporte-emprego.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{bragana2022infraestrutura, author = {Bragança, Arthur and Assunção, Juliano and Rafael, Araujo and Magalhães, Manuela}, title = {{INFRAESTRUTURA DE TRANSPORTE E EMPREGO}}, institution = {Climate Policy Initiative}, year = {2022}, month = mar, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/03/Infraestrutura-transporte-emprego.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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