Abstract

The objective of this study is to measure the contribution of the accumulation of physical and human capital on the product per worker of the municipalities of Parana for the period 2006/2015. In addition, municipal public expenditures with physical capital, education and health are included in the analysis, as well as the number of workers by income brackets. Thus, the study covers the effects of education, health, income and physical capital on the productivity of workers. For that, the econometrics of panel data considering the 399 municipalities of Parana State was used. The methodology also consists of tests to identify heteroscedasticity, serial correlation, cross-sectional dependence, and in estimates considering fixed and random effects. The results show that the productivity of the municipalities of Parana is positively impacted: i) by the municipal expenses with physical capital; ii) municipal public health expenditures; iii) accumulation of physical capital in the economy; and, above all, (iv) the accumulation of human capital. However, investments in education negatively influence productivity, because as there is no direct positive contemporary relationship, in the short term they act as a reallocation mechanism of resources from the productive sector to the education sector. Moreover, the increase in the number of workers with remuneration of up to one minimum wage and one to two minimum wages on the total number of workers reduces productivity, while the increase in the participation of workers with remuneration of two to four and four to ten minimum wages increases productivity.

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