Inequality in Brazil: A Micro-data Analysis

A new IMF report says that “Over the past decade or so, Brazil—a still highly unequal country—has been the poster child for social mobility. According to the World Bank’s international poverty line, Brazil slashed poverty from 25 percent of the population in 2004 to 8.5 percent in 2014. Extreme poverty declined from 12 to 4 percent over the same period. As millions were lifted out of poverty, the middle class was boosted. The commonly used inequality measure – the World Bank’s Gini coefficient (the closer to 1, the more unequal) – declined from 0.60 in 1990 to 0.51 in 2014. Inequality reduction was achieved thanks to a decade-long period of economic growth and deliberate income and social inclusion policies, such as minimum wage increases and targeted social programs. Yet, inequality remains high: based on data from the 2014 Pesquisa National de Amostra de Domicílios (PNAD), labor income of the population in the top decile of the income distribution corresponds to 40 percent of labor income of all Brazilian families, the top 1 per cent receives about 12 percent, and the top 0.1 per cent around 2.5 percent. Half percent of all labor income is concentrated in the top 0.01 percent.”


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Posted by at 6:36 PM

Labels: Inclusive Growth


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