1. The reorganization of the Brazilian economy, in the globalization process, has brought out changes in its productive structure, and, consequently, changes in the job market. These changes had impact on the employment at the sectoral and state level, with great concerns related to the labor relations and to the growing unemployment rates. In the 1990s, the change in the focus of the development strategy, from a closed protected economy to an open economy with monetary control, has originated changes in the income distribution as well in the labor market. Taking into consideration both of these aspects, the goal of this paper is to study how the productive structure and the income distribution in the Brazilian economy have had an impact over employment generation in 2002. This paper uses as a theoretical basis the Leontief-Miyazawa approach considering the differences between sectors and the 27 Brazilian states. METHODOLOGY The Leontief-Miyazawa Model The analysis of the intersectoral structure will be carried through the application of the Leontief-Miyazawa approach. The Leontief- Miyazawa analysis brings information on the structure of production of the economy and the sectoral origin of the generated income and also the sectoral distribution of income to households in different income brackets, and the sectoral allocation of consumption expenditures by households. The interregional input-output table The interregional input-output model, also called of “Isard Model”, due to the application of Isard (1951), requires a mix of data, actual or estimated, mainly on information flows intersectoral and interregional. INTRODUCTION Based on data from the new System of National Accounts the present work aimed at the construction of Brazilian input-output tables for 2002 to implement the Leontief-Miyazawa Model. Thus, developed this system, it was possible the application of Leontief- Miyazawa Model emphasizing the differences in terms of generating employment and the regional differences for labor. EMPLOYMENT AND INCOME DISTRIBUTION IN THE BRAZILIAN ECONOMY: AN INTERREGIONAL LEONTIEF-MIYAZAWA MODEL APPROACH Joaquim José Martins Guilhoto 1 Fernanda Sartori de Camargo 2 1 Department of Economics, FEA - University of São Paulo, Brazil,REAL, University of Illinois; and CNPq Scholar; guilhoto@usp.br 2 Economic Research Institute Foundation, University of São Paulo, Brazil, Mackenzie University, Brazil;sartori.f@gmail.com The 2008 International Input-Output Meeting Input - Output & Environment SEVILLE July 9 - 11, 2008 RESULTS Source: Research data. Table 3. Direct, Indirect and Induced Employment generated by a increase of R$ 1 million in the final demand of a given sector (Agriculture) – Brazil, 2002. Table 2. Occupied people in sectors in Brazil – 2002. Table 1. Occupied people in each one of the Brazilian states and their representation in the total number of employees - Brazil, 2002. Table 4. Sectoral Income share by each income class (%) and the total of income (Reais) in Brazilian states – 2002. REFERENCES: ISARD, W. Interregional and regional input-output analysis: a model of a space-economy. Review of Economics and Statistics, n. 33, p. 319- 328, 1951. LEONTIEF, W. (1951). The Structure of the American Economy. Segunda Edição Ampliada. New York: Oxford University Press. MIYAZAWA, K. (1963). "Interindustry Analysis and the Structure of Income Distribution." Metroeconomica, Aug.-Dec., vol. 15, nos. 2-3. FAPESP: Financial Support.