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Inequality in Brazil: A Regional Perspective

Author

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  • Carlos Góes
  • Ms. Izabela Karpowicz

Abstract

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.

Suggested Citation

  • Carlos Góes & Ms. Izabela Karpowicz, 2017. "Inequality in Brazil: A Regional Perspective," IMF Working Papers 2017/225, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2017/225
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    Citations

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    Cited by:

    1. Leone, Tharcisio, 2021. "The gender gap in intergenerational mobility," World Development Perspectives, Elsevier, vol. 21(C).
    2. Francisco Germano Carvalho Lucio & Jhorland Ayala‐García, 2022. "Public sector efficiency in Brazil," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(6), pages 308-321, December.
    3. Kishan Shah, 2022. "Diagnosing South Africa’s High Unemployment and Low Informality," Growth Lab Working Papers 193, Harvard's Growth Lab.
    4. Ms. Izabela Karpowicz & Mauricio Soto, 2018. "Rightsizing Brazil’s Public-Sector Wage Bill," IMF Working Papers 2018/225, International Monetary Fund.
    5. Kishan Shah, 2022. "Diagnosing South Africa’s High Unemployment and Low Informality," CID Working Papers 138a, Center for International Development at Harvard University.
    6. Philip Arestis & Peter Phelps, 2019. "A panel analysis of Brazilian regional inequality," Environment and Planning A, , vol. 51(7), pages 1558-1585, October.
    7. Burger,Martijn & Hendriks,Martijn & Ianchovichina,Elena, 2022. "Anatomy of Brazil’s Subjective Well-Being : A Tale of Growing Discontent and Polarization in the 2010s," Policy Research Working Paper Series 9924, The World Bank.

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