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Cyclical variations of earnings inequality in Brazil

Author

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  • Eliana Cardoso

Abstract

This paper shows that income distribution can change dramatically during thebusiness cycle. This finding contrasts with the widespread belief that income distributionchanges slowly in the absence of wars and revolutions. Macroeconomics explains in goodmeasure short-run variations in income distribution: inequality varies cyclically, and it increaseswith inflation and unemployment. Furthermore, at least in Brazil, the minimum wagelegislation does not contribute to a better income distribution. There is also evidence thatpopulist policies which lead to real appreciation cannot be justified as supporting the poor.Thus, the best way to help the poor is demonstrably not through the manipulation of pricesand wages, but probably through macro stability and a transparent tax-transfer system. JEL Classification: I32; O15.

Suggested Citation

  • Eliana Cardoso, 1993. "Cyclical variations of earnings inequality in Brazil," Brazilian Journal of Political Economy, Center of Political Economy, vol. 13(4), pages 613-625.
    • Handle: RePEc:ekm:repojs:v:13:y:1993:i:4:p:613-625:id:1350
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1350/1336
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    Citations

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    Cited by:

    1. Berry, Albert, 1995. "The Social Challenge of the New Economic Era in Latin America," 1995: Economic Integration in the Western Hemisphere Symposium, June 7-9, 1995, San Jose, Costa Rica 50818, International Agricultural Trade Research Consortium.
    2. Nora Lustig & Darryl McLeod, 1995. "Salario mínimo y pobreza: un análisis de corte transversal para países en desarrollo," Coyuntura Social 13219, Fedesarrollo.

    More about this item

    Keywords

    Income distribution; inequality; minimum wage; business cycles;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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