Inequality in Brazil: A Regional Perspective
IMF Working Papers, October 31, 2017
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- Inequality in Brazil: A Regional Perspective
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Bibliographic details
- Authors: Carlos Góes, Izabela Karpowicz
- Published: October 31, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484324776.001
Summary and scope
- Documents the decline in income inequality and a convergence in consumption patterns across Brazilian states using a new database constructed from micro data from the national households’ survey.
- State-Gini coefficients are adjusted for spatial price differences using households’ rental prices available in the survey.
- Empirical analysis covers the period 2004-14.
- Publication details: Working Paper No. 2017/225, Pages: 34, Issue: 225, Volume: 2017, DOI: https://doi.org/10.5089/9781484324776.001, ISBN: 9781484324776, ISSN: 1018-5941.
Methodology
- Data: Micro data from the national households’ survey aggregated into a new database at the state level.
- Price adjustment: State-Gini coefficients adjusted for spatial price differences using information on households’ rental prices available in the survey.
- Empirical approach: Panel regression framework applied to state-level data for 2004-14.
Key findings
- Decline in income inequality across Brazilian states during 2004-14.
- Convergence in consumption patterns across states over the same period.
- Factors contributing to the decline in inequality:
- Labor income growth.
- Formalization.
- Schooling.
- Redistributive policies, such as Bolsa Família, have also played a positive role.
Policy implications and recommendations
- Phase out untargeted subsidies, explicitly including public spending on tertiary education.
- Contain growth of public sector wages to improve budgetary efficiency and protect gains in equality.
Subjects and keywords (as listed)
- Subjects: Education, Income, Income distribution, Income inequality, Labor, National accounts, Wages.
- Keywords: Brazil, Global, growth in the public sector, household income, IMF staff calculation, Income, income convergence, Income distribution, income growth, income inequality, income inequality in Brazil, inequality in Brazil, labor income, minimum wage, public sector wage Premia, quartile income, redistribution policies, state Gini coefficient, wage growth, Wages, WP.
Inequality in Brazil: A Regional Perspective, Carlos Góes and Izabela Karpowicz, IMF Working Papers 2017, 225 (2017), October 31, 2017.
Content in this bundle
- Inequality in Brazil: A Regional Perspective, WP/17/225, October 2017