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Demographic Changes and Poverty in Brazil

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  • Ricardo Paes de Barros
  • Sergio Firpo
  • Roberta Guedes
  • Phillippe Leite

Abstract

In this study we present evidence of the impact of demographic factors on the level of poverty based on the Brazilian experience. Two demographic factors were investigated: a) the size and b) the age composition of the population. The goal was to estimate through the micro-simulation approach the impact of changes in these two factors on the distribution of income and consequently on the level of poverty. We presented estimates of the impact on poverty of a series of alternative demographic changes. First, we consider the demographic changes that occurred over the previous decades. We showed that these changes led to a continuous reduction in poverty, which is equivalent to an additional 0.4 to 0.5 percentage point in annual growth in per capita income. Since the average growth rate in per capita income in Brazil over the studied period was close to 3.0% per year, the estimated direct impact of the demographic transition had an impact on poverty close to 15% of the corresponding impact of economic growth. We also investigated: a) the importance of regional differences in demographic conditions and b) demographic differences between poor and rich families for explaining concomitant differences in poverty. Accordingly to our estimates, we can conclude that overall secular demographic changes tend to have much greater impact on poverty than differences in the time and the speed of the demographic transition across regions and between poor and rich families. Neste estudo, apresentam-se evidências do impacto dos fatores demográficos sobre a pobreza no Brasil. Dois fatores demográficos são investigados: o tamanho e a composição etária da população. O objetivo é estimar, por meio de microssimulações com dados da PNAD, o impacto de mudanças nesses dois fatores sobre a distribuição de renda e conseqüentemente sobre a pobreza. Os resultados encontrados revelam que as mudanças demográficas ocorridas ao longo das últimas décadas geraram importante e contínua redução na pobreza. Tal redução, fruto das mudanças na composição etária e no tamanho das famílias, é equivalente a um crescimento adicional da renda per capita em até meio ponto percentual ao ano. Dado que a taxa de crescimento anual da renda per capita ao longo do período analisado foi próximo a 3%, o efeito da mudança demográfica ocorrida nesse período sobre a redução da pobreza corresponde a aproximadamente 15% do efeito que o crescimento da renda teve sobre tal redução. Os demais resultados encontrados no presente estudo revelam que a mudança secular na composição demográfica foi muito mais importante para a redução da pobreza do que as diferenças entre regiões de velocidade e de momento das transições demográficas e do que as diferenças demográficas ocorridas entre pobres e ricos.

Suggested Citation

  • Ricardo Paes de Barros & Sergio Firpo & Roberta Guedes & Phillippe Leite, 2015. "Demographic Changes and Poverty in Brazil," Discussion Papers 0096, Instituto de Pesquisa Econômica Aplicada - IPEA.
  • Handle: RePEc:ipe:ipetds:0096
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    References listed on IDEAS

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    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
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    Cited by:

    1. Ahmed, S. Amer & Vargas Da Cruz,Marcio Jose, 2016. "On the impact of demographic change on growth, savings, and poverty," Policy Research Working Paper Series 7805, The World Bank.
    2. Baerlocher, Diogo & Parente, Stephen L. & Rios-Neto, Eduardo, 2019. "Economic effects of demographic dividend in Brazilian regions," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    3. Cruz, Marcio & Ahmed, S. Amer, 2018. "On the impact of demographic change on economic growth and poverty," World Development, Elsevier, vol. 105(C), pages 95-106.
    4. David E. Bloom & David Canning & Jaypee Sevilla, 2001. "Economic Growth and the Demographic Transition," NBER Working Papers 8685, National Bureau of Economic Research, Inc.

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