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Minimum wage, poverty alleviation income policies, and the relative performance of the Brazilian Northeastern economy

Author

Listed:
  • Alexandre Rands Barros
  • Diloá Athias

Abstract

This paper presents the two major hypotheses explaining the relatively higher GDP growth of Northeast, when compared to the one for the whole country. These hypotheses are that governmental transferences towards the poorest and the rises in minimum wages are responsible for such relative performance. They are formally presented theoretically and a method to test their relative role is developed, relying on county data for the period 2000 to 2006. The results indicate that the Bolsa Familia Program had a higher positive impact in the GDP growth rate of the region than the rises in Minimum wage. JEL Classification: R11.

Suggested Citation

  • Alexandre Rands Barros & Diloá Athias, 2013. "Minimum wage, poverty alleviation income policies, and the relative performance of the Brazilian Northeastern economy," Brazilian Journal of Political Economy, Center of Political Economy, vol. 33(1), pages 179-199.
    • Handle: RePEc:ekm:repojs:v:33:y:2013:i:1:p:179-199:id:307
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    More about this item

    Keywords

    minimum wage; transference policies; Northeastern growth;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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