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Social policies, personal and regional income inequality in Brazil: an I-O analysis of the "Bolsa Família" program

Author

Listed:
  • Hewings, Geoffrey J.D.
  • Azzoni, Carlos Roberto
  • Guilhoto, Joaquim José Martins
  • Haddad, Eduardo A.
  • Laes, M. A.
  • Moreira, Guilherme Renato Caldo

Abstract

The study presents a Leontief-Miyazawa model to study personal and regional income inequality in Brazil. The economy is divided into 31 sectors, in 5 macro regions; households are allocated into 10 income brackets. The study identifies the contribution of different sectors to inequality. The model is used to simulate the capacity of social policies to reduce personal and regional inequality in the country. The analysis is conducted using the pro-poor “Bolsa Família” program which is a social program that provides direct income transfers to poor (with per capita income between BRL 60,01 and BRL 120,00) and extreme poor households (with per capita income below BRL 60,00). The results show that in the short run, the “Bolsa Família” program has proven to produce positive results, both at the personal income level and at the regional concentration level, and has surely paid large dividends in electoral terms. Solving inequality problems, however, might need other mid and long run policies which could improve competitiveness of lagging regions.

Suggested Citation

  • Hewings, Geoffrey J.D. & Azzoni, Carlos Roberto & Guilhoto, Joaquim José Martins & Haddad, Eduardo A. & Laes, M. A. & Moreira, Guilherme Renato Caldo, 2007. "Social policies, personal and regional income inequality in Brazil: an I-O analysis of the "Bolsa Família" program," MPRA Paper 54508, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54508
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    References listed on IDEAS

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    1. Kenichi Miyazawa, 1960. "Foreign Trade Multiplier, Input-Output Analysis and the Consumption Function," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 74(1), pages 53-64.
    2. Amann, E. & Haddad, E. & Perobelli, F. & Guilhoto, J. J. M., 2007. "Structural Change in the Automotive Industry and its Regional Impacts: The Case of Brazil," MPRA Paper 37962, University Library of Munich, Germany.
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    Citations

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    Cited by:

    1. Tatiane Menezes & R. Silveira-Neto & Carlos Azzoni, 2012. "Demography and evolution of regional inequality," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 643-655, December.
    2. Oliveira, Gabriel & Chagas, André, 2020. "Long-Term Effects of Conditional Cash Transfers on Children: The Brazilian Case," TD NEREUS 9-2020, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    3. Gutierre, Leopoldo M. & Guilhoto, Joaquim José Martins & Nogueira, Tatiana A., 2012. "Estrutura produtiva, de consumo e de formação de renda brasileira: uma análise de insumo-produto para o ano de 2008 [Productive structure, consumption and Brazilian income formation: an analysis of," MPRA Paper 46956, University Library of Munich, Germany.
    4. Raul Silveira Neto & Carlos Azzoni, 2011. "Non-Spatial Government Policies and Regional Income Inequality in Brazil," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 453-461.
    5. Marcos, Rafael & Azzoni, Carlos & Guilhoto, Joaquim, 2014. "Decomposição da Queda na Desigualdade de Renda no Brasil: Uma Análise via Matriz de Contabilidade Social para os Anos de 2004 e 2009," TD NEREUS 5-2014, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    6. Raul M. Silveira-Neto & Carlos R. Azzoni, 2012. "Social Policy As Regional Policy: Market And Nonmarket Factors Determining Regional Inequality," Journal of Regional Science, Wiley Blackwell, vol. 52(3), pages 433-450, August.
    7. Raul Silveira Neto & Carlos Azzoni, 2011. "Measuring the Contribution of Social Policies to Regional Inequality Dynamic in Brazil," ERSA conference papers ersa11p659, European Regional Science Association.
    8. Neri, Marcelo Côrtes & Vaz, Fábio Monteiro & Souza, Pedro Herculano Guimarães Ferreira de, 2015. "Os efeitos macroeconômicos das transferências sociais: uma abordagem de matriz de contabilidade social," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 770, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    9. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Input-output; Brazil; regional income;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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