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Brazilian Poverty Between And Within Groups: Decomposition By Geographical, Group-Specific Poverty Lines

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  • Paola Salardi

    ()
    (Poverty Research Unit at Sussex, Department of Economics, University of Sussex)

Abstract

This study investigates Brazilian poverty by exploiting geographical differences in the cost of living and questions whether the standard approach in measuring poverty is informative enough when the population is heterogeneous. To do so, we apply the reformulation of the FGT class of poverty measures proposed by Chiappero and Civardi (2006). This decomposition aims to compute poverty within groups, using group-specific poverty lines, and poverty between groups by adopting a community-wide poverty line. The North and the Central-West reveal a dominance of the within component. The North-East shows the highest level of poverty, even higher than the North and the Central-West, but the high within group component is counterbalanced by a higher between group component, attributable to the high level of inequality of the North-East. The South and the South-East have between group components that dominate over within group ones. Our findings suggest that the analysis of poverty between and within groups is more exhaustive than the standard methodology when differentiated poverty lines are exploited.

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Bibliographic Info

Paper provided by Poverty Research Unit at Sussex, University of Sussex in its series PRUS Working Papers with number 41.

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Length: 35
Date of creation: Feb 2008
Date of revision:
Handle: RePEc:pru:wpaper:41

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Keywords: Poverty between and within groups; Geographical disparities; Brazil;

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References

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  1. Ferreira, Francisco H. G. & Leite, Phillippe G. & Litchfield, Julie A., 2008. "The Rise And Fall Of Brazilian Inequality: 1981–2004," Macroeconomic Dynamics, Cambridge University Press, vol. 12(S2), pages 199-230, September.
  2. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  3. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
  4. Francisco Ferreira & Julie Litchfield, 2001. "Education or Inflation? The Micro and Macroeconomics of the Brazilian Income Distribution During 1981-1995," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(114), pages 209-238.
  5. Woden, Q.T. & Ayres, W. & Barenstein, M. & Hicks, N. & Lee, K. & Maloney, W. & Peeters, P. & Siaens, C. & Yitzjaki, S., 2000. "Poverty and Policy in Latin America and Caribeean," Papers 467, World Bank - Technical Papers.
  6. Patricia Justino & Julie Litchfield & Yoko Niimi, 2004. "Multidimensional Inequality: An Empirial Application to Brazil," PRUS Working Papers 24, Poverty Research Unit at Sussex, University of Sussex.
  7. Ferreira, Francisco H. G. & Leite, Phillippe G. & Ravallion, Martin, 2007. "Poverty reduction without economic growth ? explaining Brazil's poverty dynamics, 1985-2004," Policy Research Working Paper Series 4431, The World Bank.
  8. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  9. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  10. Fishlow, Albert, 1972. "Brazilian Size Distribution of Income," American Economic Review, American Economic Association, vol. 62(2), pages 391-402, May.
  11. Sen, Amartya, 1983. "Poverty and Famines: An Essay on Entitlement and Deprivation," OUP Catalogue, Oxford University Press, number 9780198284635.
  12. Glewwe, Paul & van der Gaag, Jacques, 1990. "Identifying the poor in developing countries: Do different definitions matter?," World Development, Elsevier, vol. 18(6), pages 803-814, June.
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