Structural Transformation, Industrialization, and the Labor Market in Valença (RJ): Evidence from Gross Value Added and Formal Employment (2006–2021)

Authors

DOI:

https://doi.org/10.24859/SaberDigital.2026v19n3.2004

Keywords:

Structural transformation, Manufacturing industry, Formal employment, Economic growth, Regional development

Abstract

Introduction: Industry occupies a central position in theories of economic growth, being associated with productivity gains, productive linkages, and the dynamization of local economies. However, the strengthening of industrial activity is not always accompanied by a proportional expansion of employment. Objective: To analyze the transformation of the productive structure and formal labor market in the municipality of Valença, Rio de Janeiro, Brazil, with emphasis on the evolution of industry between 2006 and 2021. Material and Methods: Data from the Brazilian Institute of Geography and Statistics Automatic Recovery System (SIDRA/IBGE) and microdata from the Annual Social Information Report (RAIS/MTE) were used. The analysis combined descriptive statistics and linear regression models with a deterministic time trend, considering the evolution of industrial employment, its share in formal employment, and the share of industry in municipal Gross Value Added (GVA). Results and Discussion: Between 2006 and 2021, industrial GVA, expressed at constant 2021 prices, increased by 1,076.9%, while its share in municipal GVA rose from 9.0% to 41.2%. Over the same period, industrial employment increased by 25.9%, and its share in formal employment rose from 17.5% to 19.9%. Time-trend estimates corroborated the difference between productive and occupational trajectories, with an average annual increase of 0.38 percentage points in industry's share of formal employment and 1.54 percentage points in its share of GVA. Conclusion: The results reveal a substantial transformation in Valença's productive structure, characterized by the strengthening of industry's role in value generation without an equivalent change in its share of formal employment. The magnitude of this divergence over a fifteen-year period reinforces the importance of future research into the mechanisms associated with the transformation of local industry.

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Published

2026-09-10

How to Cite

Xavier , B. D. (2026). Structural Transformation, Industrialization, and the Labor Market in Valença (RJ): Evidence from Gross Value Added and Formal Employment (2006–2021). Revista Saber Digital, 19(3), e20261901. https://doi.org/10.24859/SaberDigital.2026v19n3.2004

Issue

Section

Economy