In this study, we document the decline in income inequality and a convergence in consumption patterns in Brazilian states in a new database constructed from micro data from the national households’ survey. We adjust the state-Gini coefficients for spatial price differences using information on households’ rental prices available in the survey. In a panel regression framework, we find that labor income growth, formalization, and schooling contributed to the decline in inequality during 2004-14, but redistributive policies, such as Bolsa Família, have also played a positive role. Going forward, it will be important to phase out untargeted subsidies, such as public spending on tertiary education, and contain growth of public sector wages, to improve budgetary efficiency and protect gains in equality.

Abstract: This paper addresses the potential effects of the Doha round of trade negotiations on poverty and income distribution in Brazil, using an applied general equilibrium (AGE) and micro-simulation model of Brazil tailored for income distribution and poverty analysis. Of particular importance is the fact that the representative household hypothesis is replaced by a detailed representation of households. The model distinguishes 10 different labor types and has 270 different household expenditure patterns. Income can originate from 41 different production activities (which produce 52 commodities), located in 27 different regions in the country. The AGE model communicates to a micro-simulation model that has 112,055 Brazilian households and 263,938 adults. Poverty and income distribution indices are computed over the entire sample of households and persons, before and after the policy shocks. Model results show that even important trade policy shocks, such as those applied in this study, do not generate dramatic changes in the structure of poverty and income distribution in the Brazilian economy. The simulated effects on poverty and income distribution are positive, but rather small. The benefits are concentrated in the poorest households.

Essay aus dem Jahr 2010 im Fachbereich Politik - Region: Mittel- und Südamerika, Escola de Administração de Empresas de São Paulo Fundação Getulio Vargas, Sprache: Deutsch, Abstract: Social equality is essential for every country, not only as an end itself, but also as tool for promoting economic growth (Skidmore, 2004).Brazil is one of the most unequal countries in the world, with a Gini Index of 0.567 in 2005 (CIA, 2010). Although this is still high and leaves Brazil the 10thmost unequal country out of 134, the inequalities are improving significantly (in 1998 the Index was 0.607). This essay will focus on two questions: What has caused the striking inequalities in Brazil? Why did these inequalities improvein the recent years? [...]

Brazil is a country of sharp disparities. The gap between the richest and the poorest citizens is one of the largest in the world. Inequality in Brazil is well-known, but its low mobility is not. Until now, few studies have sought to investigate how forms of social exclusion constrain socioeconomic mobility. Why do particular groups remain excluded and trapped in poverty for generations? What do Brazilians themselves think about income inequality and social mobility? This study explores these issues, provides a set of options to redress them, and promotes a national dialogue for action. In addi.

Published in 1999. The liberalization process in Latin America during the 1990s resulted in the increase and diversification of trade in the region. Brazil, as a major player, strengthened its insertion into the world economy through the adoption of strategies for opening up markets and of new production technologies; complemented more recently by the creation of a broadly based stabilization plan. In this context, issues related to structural changes in the economy, such as those involving the complexity of new international trading agreements and their impact on the Brazilian economy, warrant special attention. The results of this study suggest that the interplay of market forces in the Brazilian economy favour the more developed region of the country.

Inequality is a global concern, for its social and human consequences, and its impact on the pace and pattern of economic growth. In India and Brazil, this issue has received increasing attention in recent years. In Brazil, inequality grew until the 1980s, when it reached extreme levels, but has since been declining, especially during the first decade of the twenty-first century. In India, inequality showed little change up to the 1980s, but has since been rising. These differences result from a variety of economic, social and political factors, which are examined in depth in this comparative study. The book examines inequality in overall distributions of income and expenditure, and disparities across gender, region, caste, race, and access to education. It compares the experience of the two countries, and draws conclusions on the types of policy frameworks and institutions that might lead to a more equitable pattern of growth.