Measuring the Contribution of Social Policies to Regional Inequality Dynamic in Brazil
AbstractWe decompose the recent changes in regional inequality in Brazil into its components, highlighting the role of spatially blind social programs. We aggregate personal income micro data to the state level, differentiating 9 income sources, and assess the role of these components in the observed changes in regional inequality indicators. The main results indicate that the largest part of the recent reduction in regional inequality in Brazil is related to the dynamics in the market-related labor income, with manufacturing and services favoring inequality reduction. Labor income in agriculture, retirement and pensions, and property rents and other sources favored concentration. The social programs Bolsa FamÃlia and BenefÃcios de PrestaÃ§Ã£o Continuada are responsible for more than 24% of the reduction in inequality, although they account for less than 1.7% of the disposable household income. Such positive impact on regional concentration is impressive, since the goals of the programs are clearly non-spatial.
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Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p659.
Date of creation: Sep 2011
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-05 (All new papers)
- NEP-GEO-2011-12-05 (Economic Geography)
- NEP-LTV-2011-12-05 (Unemployment, Inequality & Poverty)
- NEP-URE-2011-12-05 (Urban & Real Estate Economics)
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Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting], ANPEC - AssociaÃ§Ã£o Nacional dos Centros de PÃ³sgraduaÃ§Ã£o em Economia [Brazilian Association of Gr
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