Poverty And Income Distribution In Brazil1

The article refutes the contention that Brazil's development has not benefited the poor and that rapid growth has had a polarizing effect on the distribution of income. It uses the National Household Expenditure Survey of 1974–75 to try to quantify the extent of poverty and concludes that the incòme levels of the poor have been underestimated in the past. The evidence suggests also that occupational and regional variables are powerful determinants of income stratification. Wage rate statistics convey information about long‐term trends in income. The article notes considerable increases in rural wages during the 1970s as well as wage improvements in the urban informal sector. Shifts in the structure of employment have probably been the most powerful cause of economic improvement in Brazil. The enormous absorption of rural‐urban migrants occurred without a flooding of the lower income urban categories. Social indicators and statistics referring to ownership of household durable consumer goods corroborate income and labor market evidence to the effect that there has been considerable progress for the poor during the 1970s. The article reviews statistical evidence bearing on distribution. There is little doubt that the distribution of income in Brazil is very skewed. It is not possible, however, to come to conclusions about changes that might have occurred in the degree of inequality over time. Finally, the article includes data on the “distribution of education” and the “distribution of life expectancy” and notes improvement over time in both. This article takes advantage of the Brazilian population census of 1980 to bring up to date some of the statistical material that bears on the issues of poverty and income distribution. First, the article describes the overall context of Brazilian development since 1960. The second part analyzes the extent of poverty in the mid‐1970s. The third part deals with trends in wages, employment and selected welfare indicators. The last section briefly summarizes the information relating to income distribution: what is the extent of skewedness and how has it evolved over time?