Three hypotheses on services, the Gershuny effect, the externalisation
of producers services and the macroeconomic equation for the services
share in employment, are tested with Brazilian data. The first two sh
ow trends similar to those in the developed economies, but, in the las
t one, findings are affected by consideration of the underground econo
my. The results suggest a dual character for Brazilian services: an in
formal, labour intensive group of sectors, present in the large metrop
olitan areas, coexists with a formal, less labour intensive one, where
producers' services are probably predominant. These groups will respo
nd differently to a greater trade liberalisation.