1945
CEPAL Review No. 71, August 2000
  • E-ISSN: 16840348

Abstract

Despite tremendous macroeconomic instability, Brazil’s urban income distributions in 1976 and 1996 appear, at first glance, deceptively similar. Mean household income per capita was stagnant, with a minute accumulated growth of 4.3% over the two decades. The Gini coefficient hovered just above 0.59 in both years, and the incidence of poverty (with respect to a poverty line of R$60/month at 1996 prices) was effectively unchanged at 22%. Yet, behind this apparent stability, a powerful combination of labour market, demographic and educational dynamics were at work, one effect of which was to generate a substantial increase in extreme urban poverty. Using a micro-simulation-based decomposition methodology which endogenizes labour incomes, individual occupational choices and education decisions, we show that the distribution of incomes was being affected, on the one hand, by a decline in average returns to both education and experience and by impoverishing changes in the structure of occupations and labour force participation (all of which tended to increase poverty), and on the other hand by an increase in educational endowments across the distribution and a progressive reduction in dependency ratios (both of which tended to reduce poverty).

Related Subject(s): Economic and Social Development
Countries: Brazil

You do not have access to article level metrics. Please click here to request access

http://instance.metastore.ingenta.com/content/journals/16840348/2000/71/3
Loading
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error