The impact of shocks on the Brazilian cultural sector: an analysis of employment and income in the light of budget cuts

Abstract Recent changes in public policies directed at the Brazilian cultural sector, such as the loss of ministry status and changes in the Culture Incentive Law, have raised a number of questions about the importance of the sector to the economy. In this context, this article analyzes how a reduction in the consumption of goods and services from the cultural sector impacts on the production, income and employment of the sector itself and other economic activities. For such, we use the input-output model as methodology. The results show that the effects of the proposed shock are perceived in several sectors of the economy, especially for those direct suppliers of inputs to the cultural sector. In addition, there is a significant reduction in jobs and household incomes, not only contained in the cultural sector, but spread throughout the economy.