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Income Distribution In Brazil 1981-1990 Parametric and Non-Parametric Approach

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  • Frank A. Cowell
  • Francisco H.G. Ferreira
  • Julie A. Litchfield

Abstract

We examine changes in the shape of the Brazilian income distribution during the “lost decade” of the 1980s, using a recently available comprehensive micro-data set. We show that income inequality increased during the decade and that average real incomes also increased. We illustrate some of the difficulties involved in modeling income distributions, particularly ones as skewed as that of Brazil, by applying kernel density estimation techniques, and examine separately the upper tail of the distribution by fitting Pareto functions. The shape of the underlying income distribution was transformed in a particularly interesting fashion during the 1980s, becoming flatter and broader throughout the decade. Inequality amongst the rich also increased during the decade with Pareto’s a falling between 1981 and 1990.

Suggested Citation

  • Frank A. Cowell & Francisco H.G. Ferreira & Julie A. Litchfield, 1999. "Income Distribution In Brazil 1981-1990 Parametric and Non-Parametric Approach," Journal of Income Distribution, Ad libros publications inc., vol. 8(1), pages 3-3, June.
    • Handle: RePEc:jid:journl:y:1999:v:08:i:1:p:3-3
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    Cited by:

    1. Almas Heshmati, 2006. "Continental And Sub-Continental Income Inequality," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 7-52, January.
    2. Hagmann, M. & Scaillet, O., 2007. "Local multiplicative bias correction for asymmetric kernel density estimators," Journal of Econometrics, Elsevier, vol. 141(1), pages 213-249, November.
    3. Vincenzo Lombardo, 2011. "Growth and Inequality Effects on Poverty Reduction in Italy," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 241-280.
    4. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute of Labor Economics (IZA).
    5. François Bourguignon & Francisco de Hollanda Guimarães Ferreira, 2000. "Understanding inequality in Brazil: a conceptual overview," Textos para discussão 434, Department of Economics PUC-Rio (Brazil).
    6. Ricardo Freguglia & Naercio Menezes-Filho, 2012. "Inter-regional wage differentials with individual heterogeneity: evidence from Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 17-34, August.

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