State–Firm Nexus, Indigenous Coupling, and Social Downgrading in the Aerospace Global Production Network: A Case Study of Embraer, Brazil

Figures & data

Figure 1. Map of São José dos Campos.

Source: Author.

Figure 2. Brazil’s indigenous coupling into the aerospace GPN.

Source: Author.

Figure 3. Increase in Embraer’s number of employees.

Source: Interview #7, Embraer, 2017.

Table 1 Program of Specialization in Engineering

Selection and enrollment		Students are selected based on a test, which is designed by the AIT with a national reach. Enrollment is flexible ranging from 30 to 120 depending on Embraer's needs.
Teaching and curriculum		Collaborative teaching between the AIT and Embraer, with the AIT covering slightly more than half of the program. Curriculum is mostly customized according to Embraer’s interests, but phase 1 provides general skills.
Phase 1	Five months	Foundational courses to learn the basics of aeronautics production.
Phase 2	Seven months	Specific career paths related to the aerospace sector.
Phase 3	Six months	Teamwork around the development of master’s thesis aligned with Embraer's directives, and under the supervision of an AIT professor and an Embraer engineer. This phase takes place at Embraer, where students work as full-time apprentices.

Source: Interview #7, Embraer, 2017.

Table 2 Lowest Wages (BRL R$) for Aeronautic Engineers in SJC versus the PSE Scholarship

Year	Lowest Wages Paid for Aeronautic Engineers in SJC*	Program Scholarship (Phases 1 and 2)	Pay Difference
2004	900,00**	724,00	-19.56%
2005	1750,00	940,00	-46.86%
2006	1520,00	940,00	-38.16%
2007	1660,00	940,00	-43.98%
2008	2325,00	1200,00	-48.33%
2009	1530,00	1200,00	-21.57%
2010	2550,00	1200,00	-52.94%
2011	2725,00	1200,00	-55.97%
2012	2712,00	1200,00	-55.77%
2013	2034,00	1350,00	-33.58%
2014	2172,00	1500,00	-30.91%
2015	2364,00	1500,00	-36.61%
2016	2640,00	1500,00	-43.18%
2017	3748,00	1500,00	-59.98%
2018	2862,00	1500,00	-47.57%
2019	2994,00	1500,00	-49.88%

Source: CAGED 2004–19; CAPES 2023; Interview #7, Embraer, 2017 and 2019.

* Embraer doesn't reveal individual salary details. CAGED governmental data provides salary information by occupation, city, and year (only 2004–19). While unlikely that Embraer pays the lowest salaries for aeronautical engineers in SJC, the data indicates that scholarships in the PSE are even lower than the city's minimum wages for this occupation.

** Payroll taxes were not computed, which can add 39 percent (Fernandes 2018).

Table 3 Number of PSE Students per Year

Year	Number of Students
2001	165
2002	217
2003	83
2004	81
2005	99
2006	171
2007	114
2008	71
2009	57
2010	90
2011	105
2012	111
2013	58
2014	61
2015	30
2016	40
2017	30
2018	25
2019	30
Total	1644

Source: Interview #7, Embraer, 2017 and 2019.

CAGED - Cadastro Geral de Empregados e Desempregados [General Registration of Employed and Unemployed]. 2004–19. http://pdet.mte.gov.br/novo-caged.

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CAPES - Coordenação de Aperfeiçoamento de Pessoal de Nível Superior [Coordination for the Improvement of Higher Education Personnel]. 2023. https://www.gov.br/acessoainformacao/pt-br.

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Fernandes, D. P. 2018. Quanto custa um funcionário e todos os encargos trabalhistas envolvidos? [How much an employee costs and what are all the payroll taxes involved?]. Treasy, February 28, 2018. https://www.treasy.com.br/blog/encargos-trabalhistas/.

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