Exports cause Brazilian companies to increase the number of employees by an average of 37.6%

Brazilian companies that begin exporting increase their number of employees by an average of 37.6%. This is revealed in the study "Learning Effect on Exports: How International Integration Transforms Brazilian Companies," prepared by the Secretariat of Foreign Trade of the Ministry of Development, Industry, Commerce, and Services (Secex/MDIC).

The survey confirms that entering the international market has a direct impact on the creation of formal jobs. The study, which analyzed data from the Annual Social Information Report (RAIS) and Secex between 2010 and 2019, shows that the positive effects are consistent over time and persist for companies of different sizes, operating in different sectors of the economy and exporting to different markets.

Although the average wage did not show a statistically significant change, the increase in hiring resulted in a proportionally higher increase in the total wage bill for exporting companies. Furthermore, a sample of companies active in 2011 and 2018 revealed that workers who remained at the same companies experienced more significant average wage increases than those at non-exporting companies: 31.9% for exporting companies, compared to 29.2% for non-exporting companies.

The study considered the so-called “self-selection” effect, the tendency for more productive companies to become exporters, and confirmed that there is a real gain in employment associated with switching to exporting.

Sample

More than three thousand exporting companies from the agricultural, extractive, and manufacturing sectors were analyzed. Sectors related to services, commerce, and construction were excluded because their main activity was not the production of goods for export. The sample included only companies with at least five employees across all years, ensuring greater consistency in the analysis.

The analysis also aligns with the report "Profile of Brazilian Exporting Firms," published by Secex in 2023, which shows that exporting companies are larger, more qualified, and pay higher wages than non-exporting companies—even within the same sector and size.

The new study results indicate that the act of exporting plays a fundamental role in differences related to company size, reinforcing that export promotion policies have the potential to boost the generation of formal employment in the country.

To access official foreign trade data, click here.

To learn about other SECEX studies, click here.