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Productive structure and income distribution: The Brazilian case


  • Moreira, Guilherme R.C.
  • Almeida, Leandro
  • Guilhoto, Joaquim M.
  • Azzoni, Carlos R.


The objective of the paper is to assess the impacts of some of the important changes occurred in the Brazilian economy in the 90s on income distribution. 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 assess 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 remain within the distribution of wages within the sectors.

Suggested Citation

  • Moreira, Guilherme R.C. & Almeida, Leandro & Guilhoto, Joaquim M. & Azzoni, Carlos R., 2008. "Productive structure and income distribution: The Brazilian case," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(2), pages 320-332, May.
  • Handle: RePEc:eee:quaeco:v:48:y:2008:i:2:p:320-332

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    References listed on IDEAS

    1. Green, Francis & Dickerson, Andy & Saba Arbache, Jorge, 2001. "A Picture of Wage Inequality and the Allocation of Labor Through a Period of Trade Liberalization: The Case of Brazil," World Development, Elsevier, vol. 29(11), pages 1923-1939, November.
    2. Filho, Joaquim Bento de Souza Ferreira & Horridge, Mark, 2005. "The Doha Round, poverty, and regional inequality in Brazil," Policy Research Working Paper Series 3701, The World Bank.
    3. Azzoni, Carlos Roberto & Guilhoto, Joaquim José mantins & Haddad, Eduardo & Menezes, Tatiane & Silveira, Fernando & Hasegawa, Marcos, 2011. "Commodity price changes and their impacts on poverty in developing countries: the Brazilian case," MPRA Paper 37957, University Library of Munich, Germany.
    4. Guilhoto, J. J. M. & Sesso Filho, U. A., 2005. "Estimação da Matriz Insumo-Produto a Partir De Dados Preliminares das Contas Nacionais
      [Estimation of input-output matrix using preliminary data from national accounts]
      ," MPRA Paper 38212, University Library of Munich, Germany.
    5. Guilhoto, Joaquim José M. & Fonseca, Manuel Alcino R. Da, 1987. "Uma análise dos efeitos econômicos de estratégias setoriais," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 41(1), January.
    6. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr,David & Gurgel, Angelo, 2003. "Regional, multilateral, and unilateral trade policies on MERCOSUR for growth and poverty reduction in Brazil," Policy Research Working Paper Series 3051, The World Bank.
    7. 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.
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    Cited by:

    1. Correa Mautz, Felipe, 2016. "Pobreza, desigualdad y estructura productiva en ciudades: evidencia desde Chile usando datos de panel," Desarrollo Productivo 207, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Moreira, Guilherme Renato Caldo & Ichihara, Silvio Massaru & Guilhoto, Joaquim José Martins, 2007. "O impacto do aumento das exportações de álcool sobre a distribuição de renda do Brasil
      [The impact of the increased exports of ethanol on the distribution of income of the Brazil]
      ," MPRA Paper 31517, University Library of Munich, Germany.
    3. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Other Operational Studies 8083, The World Bank.

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