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Macroeconomic performance and poverty in Brazil

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  • Orlando Sotomayor

Abstract

Drawing on Brazilian time-series data this study finds an inelastic link between poverty and wages over the macroeconomic cycle that is devoid of the asymmetric effects that characterise the phenomenon's response to changes in the rate of unemployment. Deepening of structural reforms in the second half of the 1990s had no effect on the aforementioned relationships, which also varied little by regional level of development. Finally, the connection between poverty and long-term income changes was more elastic, suggesting an association between the economy's recent disappointing performance in alleviating poverty and its lacklustre growth record over the past two decades.

Suggested Citation

  • Orlando Sotomayor, 2006. "Macroeconomic performance and poverty in Brazil," Journal of Development Studies, Taylor & Francis Journals, vol. 42(1), pages 139-157.
    • Handle: RePEc:taf:jdevst:v:42:y:2006:i:1:p:139-157
    DOI: 10.1080/00220380500356811
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    References listed on IDEAS

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    1. Easterly, William & Fischer, Stanley, 2001. "Inflation and the Poor," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(2), pages 160-178, May.
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    6. McIntyre, Frank & Pencavel, John, 2004. "The Effect of Macroeconomic Turbulence on Real Wage Levels and the Wage Structure: Brazil, 1981-1999," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 681-717, July.
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    1. Sotomayor, Orlando J., 2021. "Can the minimum wage reduce poverty and inequality in the developing world? Evidence from Brazil," World Development, Elsevier, vol. 138(C).
    2. Orlando Sotomayor, 2019. "Growth with reduction in poverty and inequality: did Brazil show the way?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(4), pages 521-541, December.

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