Annex 1 Details of methodology and quantification calculations Stage of the
3. Results
3.3 The spread of job creation and the location quotient .1 Sugarcane
65 Social Externalities of Fuels
Petroleum and derivatives production activities are located in 196 municipalities (128 for petroleum produc- tion and 107 for derivatives production, with both activities being found in 39 municipalities). We can see that sugarcane and ethanol production activities are present in approximately six times more municipalities (1,086) than those having activities related to petroleum and derivatives production. This highlights how sugarcane and ethanol activities are much more widely spread. Figures 5 and 6 illustrate, respectively, the distribution of formal employment in sugarcane and ethanol production, and in oil and derivatives production, in 2007.
The next section seeks to widen the discussion with respect the capacity of the four sectors to spread job creation.
3.3 The spread of job creation and the location quotient
Table 9 shows the main indicators for the 15 leading São Paulo state municipalities in terms of employment related to ethanol production. Sebastianópolis do Sul had the best job QL (223.876) among these munici- palities. The annual GDP per capita in Sebastianópolis do Sul was R$14,032 in 2006, and the average age of ethanol workers was 32.9 years.
Just as in sugarcane production, ethanol production also has a widespread impact, creating jobs in 61 mu- nicipalities of São Paulo where the QL is greater than one.
Location quotient Number of municipalities
0 < QL< 1 19
1 < QL < 5 13
5 < QL< 10 10
10 < QL 36
Total districts: ethanol 80
Table 8 Municipalities in the state of São Paulo by band of location quotient, in 2008
Source: Prepared by the authors from RAIS data (2008).
Municipality Jobs* Job LQ GDP per capita Average Age
Paraguaçu Paulista 10,228 37.980 10,000 33.8
Pontal 9,585 38.938 15,374 32.2
Lençóis Paulista 8,145 17.649 26,043 35.2
Novo Horizonte 8,087 29.277 22,399 34.2
Promissão 6,857 55.512 9,478 30.5
Orindiuva 6,475 63.858 15,622 31.5
Catiguá 5,465 60.427 12,510 34.1
Miguelópolis 5,253 55.316 8,365 31.6
Guaíra 5,172 36.788 14,136 34.5
Clementina 4,937 9.598 15,520 32.0
Santa Adélia 4,866 19.290 15,871 33.1
Bocaina 4,825 23.915 20,238 34.7
Santa Cruz das Palmeiras 4,527 49.631 10,295 34.1
Florida Paulista 4,138 47.123 11,699 34.9
Pirassununga 3,907 39.686 9,701 31.0
Total for the state of São Paulo 255,851 - - 34.0
Table 7 Indicators by municipality in São Paulo state
Source: Prepared by the authors using data from the RAIS (2008) and the IBGE (2006).
* To estimate the number of sugarcane plantation workers that can be attributed to ethanol production in São Paulo state we used the proportional production mix
67 Social Externalities of Fuels
Table 9
Municipality Jobs Job LQ GDP per capita Average Age
Teodoro Sampaio 3,512 124.489 7,725.00 33.6
Guairá 3,484 53.554 15,871.00 33.2
Sebastianópolis do Sul 3,413 223.876 14,032.00 32.9
São Paulo 3,219 0.133 25,675.00 31.7
Iracemápolis 3,072 82.357 26,226.00 36.9
Sud Mennucci 2,834 158.833 13,742.00 32.7
Batatais 2,614 34.365 13,815.00 34.3
Narandiba 2,498 196.497 10,719.00 32.1
Parapuã 2,473 148.328 9,282.00 33.4
Valparaíso 2,448 61.239 11,562.00 30.9
Caiuá 2,377 205.741 10,561.00 32.8
Bento de Abreu 2,334 110.145 27,044.00 31.5
Tanabi 2,288 80.165 8,746.00 31.3
Junqueirópolis 2,205 84.91 9,641.00 34.7
Presidente Alves 2,177 213.997 14,357.00 35.2
State of São Paulo 65,983 - - 33.2
Indicators by municipal district in the state of São Paulo
Source: Prepared by the authors using data from the RAIS (2008) and IBGE (2006).
3.3.3 Petroleum production
The state of Rio de Janeiro is the leading generator of employment in petroleum production, accounting for 61.97% of jobs in the sector. In 2008, this activity accounted for 42,820 formally-contracted jobs in the state.
Unlike ethanol production, which creates jobs in 80 municipalities in São Paulo, the leading producer state, petroleum production is present in just 14 municipalities in the state of Rio de Janeiro.
Table 10 shows these 14 municipalities distributed by band of location quotient. In 2008, the state of Rio de Janeiro had just two municipalities, Macaé and Três Rios, where the QL was greater than one, so indicat- ing productive specialization in 2.17% of state municipalities and in 14.3% of the municipalities where the activity is present.
Table 11 presents the main indicators for the 14 municipalities where there is petroleum production in the state of Rio de Janeiro.
Macaé had the highest job QL (20.609). In 2008, the average age of a petroleum production worker in the municipality was 38, and the annual GDP per capita was R$40,281.
Municipality Jobs Job LQ GDP per capita Average Age
Macaé 25,319 20.609 40,281 38.0
Rio de Janeiro 15,538 0.627 20,851 41.0
Niterói 1,233 0.636 15,651 36.7
Três Rios 303 1.257 11,660 36.6
Duque de Caxias 156 0.088 26,392 46.0
Rio das Ostras 136 0.704 117,532 31.1
Angra dos Reis 69 0.167 24,250 47.3
Campos dos Goytacazes 0.02 53,797 36.7
Volta Redonda 20 0.027 23,269 35.8
Saquarema 12 0.083 9,185 28.2
Silva Jardim 5 0.134 6,022 23.8
Rio das Flores 4 0.125 20,955 47.8
Teresópolis 4 0.012 10,476 31.0
Rio Bonito 1 0.003 13,532 49.0
State of Rio de Janeiro 42,820 - - 39.0
Table 11 Indicators by municipal district in the state of Rio de Janeiro
Source: Prepared by the authors using data from the RAIS (2008) and IBGE (2006).
Location Quotient Number of Municipalities
0 < LQ < 1 9
1 < LQ < 5 10
5 < LQ < 10 2
10 < LQ 7
Total municipalities: petroleum derivatives production 28
Table 12 Municipalities in the state of São Paulo by band of location quotient, in 2008
Source: Prepared by the authors from RAIS data (2008).
Location Quotient Number of Municipalities
0 < LQ< 1 12
1 < LQ < 5 1
5 < LQ < 10 -
10 < LQ 1
Total municipalities: petroleum production 14
Table 10 Municipalities in the state of Rio de Janeiro by band of location quotient, in 2008
Source: Prepared by the authors from RAIS data (2008).
69 Social Externalities of Fuels
Some caveats are necessary when analyzing the number of jobs and the presence of business establish- ments in the municipalities. The RAIS database reflects information provided by the company and attri- butes to each productive activity the company’s registered location, as per its CNPJ number in the year of the declaration. This is considered in the RAIS as the business establishment. The company also provides information about where each employee works, which is not necessarily the same place as the location of the business establishment. The Rio de Janeiro municipality of Campos dos Goytacazes, for example, is significant in terms of creating jobs associated with petroleum, but does not have a high number of em- ployees, because many of the workers registered there could be working in another municipalityxvi.
3.3.4 Petroleum derivatives
The state of São Paulo creates the greatest number of jobs associated with the production of petroleum deriv- atives. This activity created 6,544 formal jobs in the state in 2008 but was present in just 28 municipalities.
Table 12 shows municipalities distributed by band of location quotient. In 2008, São Paulo had 19 munici- palities with QL greater than one, thus indicating productive specialization in 67.9% of the municipalities where this activity is present, but in just 2.95% of all municipalities in the state.
Table 13 shows the main indicators for the 15 largest job creators in the state of São Paulo.
Paulínia, besides having the largest number of jobs in the activity, had the highest job QL (76.159) amongst the districts. The average age of the worker was 37.5 years and the district had an annual GDP per capita of R$104,728.