Partisanship and Conventions
An Analysis of the Impact of Party Alignments on Employment Levels in Brazilian Companies between 2000 and 2020
DOI:
https://doi.org/10.33834/bkr.v12i1.360Keywords:
Expectations, Conventions, Economic policy, Partisan Aligment, Political coordinationAbstract
The goal of this research is to examine the impact of political alignment among mayors, governors, and the President on local economic activity in Brazil, mainly focusing on labor demand by companies. This analysis is framed within the post-Keynesian school's concept of conventions. The paper provides an overview of post-Keynesian literature discussing the development of conventions and their implications for modern economies. The methodology involves empirical studies demonstrating that political alignments are likely to have a positive effect on variations in the formal employment rate at the level of individual firms. The findings indicate that examining conventions offers a valuable understanding of the uncertainties and complexities inherent in economic decision-making processes at the microeconomic level. This is especially pertinent in the Brazilian context, where political affiliations significantly influence the formation of regional economic conventions. Overall, this study sheds light on the determinants of employment levels in Brazilian companies and underscores the critical role of political coordination in the promotion of economic stability by mitigating uncertainty and fostering the emergence of optimistic economic conventions.
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