Human capital or wild capitalism? An appraisal of the controversial distribution of income during the Brazilian “miracle”

Abstract

This article aims at providing an overview of the Brazilian income distribution controversy during the 1960’s. To that end, we present the key arguments of the so-called “official” interpretation, based mostly on Langoni’s (1973) study, as well as the main criticisms it received. The “official” interpretation states that the increase in the inequality of income distribution between 1960 and 1970 is a natural and transitory consequence of the disequilibrium between the supply and demand of qualified labor, within the context of a high economic growth. However, from our part and in line with the main criticisms it received, we suggest that the “official” interpretation offers arguments which actually hinder the importance of crucial elements, both theoretical and empirical, linked to the organizational hierarchy of businesses, to the economic policy adopted by the military government and to the pattern of capitalist development in Brazil.