Development and inequalities in Brazil, IPEA (Brazil). Dr. Marcelo Abi-Ramia Caetano, Coordinator of Social Security and Social Assistance.

1. Development and Inequalities
in Brazil
Algiers, December 2014

2. How is Society Divided?
• Income
• Region
• Sectors
• Factors of production
• Gender
• Race
• Rural & urban
• Etc.

3. What sources of data will the
database use?
• National surveys
• Census
• Tax
• Administrative data

4. How does government affect the
income distribution?
• Fiscal policy as a way of redistributing
income via:
• Tax
• Expenditure

5. Matrix of Policy Effects on
Distribution in Brazil
Policy Progressive Regressive Neutral Inconclusive
Tax X
Bolsa família
(Conditional Cash
Transfers to the
young)
X
Pensions for private
sector workers
X X
Pensions for public
employees
X
Regional effects of
pensions policy
X
Real adjustments to
the minimum wage
X

6. Poverty Distribution by Age in Brazil
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
%dePobres
Idade (em anos)
"Com Transferências Previdenciárias" "Sem Transferências Previdenciárias"
Linha de Pobreza Observada
Linha de Pobreza Estimada (Caso não houvesse
transferências previdenciárias)

7. 15.00
17.00
19.00
21.00
23.00
25.00
27.00
29.00
31.00
Ratio of the Average Income of the 10% richest to 40% Poorest

8. 0.500
0.520
0.540
0.560
0.580
0.600
0.620
0.640
0.660
Brasil
1976
1977
1978
1979
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1992
1993
1995
1996
1997
1998
1999
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011
2012
2013
GiniIndex
Gini Index in Brazil From 1976 to 2013

9. Remarks
• One should also analyze the effect of a
policy on:
• Incentives (efficiency)
• Fiscal sustainability
• Differentiate poverty from distribution