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Productive Structure and Income Distribution: the Brazilian Case

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Author Info
Guilherme Moreira ()
Leandro De Oliveira Almeida ()
Joaquim Jose Martins Guilhoto ()
Carlos Roberto Azzoni ()

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Abstract

This study deals with the impacts of structural changes on income distribution in Brazil in the period 1992-2002. A Pure Leontief Model and a Leontief-Miazawa Model were utilized to portray the structure of the economy in both years, and to perform counterfactual simulations on some important changes occurring during the period. The methodology allowed for the identification of the high and low inequality sectors in both years, and to their contribution to the increasing inequality during the period. It is interesting to notice that some sectors with low internal inequality ended-up provoking increased global inequality through their interaction pattern with other sectors in the economy,and through the consumption structure. The results also indicate that the change in sectoral shares in the period contributed to diminishing inequality. Therefore, the causes for increasing inequality remains within the distribution of wages within the sectors.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa06p152.

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Date of creation: Aug 2006
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Handle: RePEc:wiw:wiwrsa:ersa06p152

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  1. Manuel Alcino R. Da Fonseca & Joaquim José M. Guilhoto, 1987. "Uma análise dos efeitos econômicos de estratégias setoriais," Revista Brasileira de Economia, Graduate School of Economics, Getulio Vargas Foundation (Brazil), vol. 41(1), April.
  2. Guilhoto, Joaquim J. M. & Hewings, Geoffrey J. D. & Sonis, Michael & Guo, Jiemin, 2001. "Economic structural change over time: Brazil and the United States compared," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 703-711, August. [Downloadable!] (restricted)
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