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Non-Spatial Government Policies and Regional Income Inequality in Brazil

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  • Raul Silveira Neto
  • Carlos Azzoni

Abstract

Silveira Neto R. Da M. and Azzoni C. R. Non-spatial government policies and regional income inequality in Brazil, Regional Studies. This paper uses both macro- and micro-data to analyse the role of social programmes in the recent reduction in Brazilian regional income inequality. Convergence indicators are presented for different sources of regional income in the period 1995-2006. A decomposition of the Gini indicator allows the identification of the role of each of these income sources with respect to the reduction of regional inequality during the period. The results point out that both labour productivity and government non-spatial policies - mainly minimum wage changes and income transference programmes - do have a role in explaining regional inequality reduction during the period. [image omitted] Silveira Neto R. Da M. et Azzoni C. R. Les politiques gouvernementales non-spatiales et l'ecart des revenus regionaux au Bresil, Regional Studies. Cet article emploie des donnees a la fois macroeconomiques et microeconomiques afin d'analyser le role des programmes d'actions sociales quant a la baisse recente de l'ecart des revenus regionaux au Bresil. On presente des indicateurs de convergence pour diverses sources des revenus regionaux pour la periode allant de 1995 a 2006. Une decomposition du coefficient de Gini permet d'identifier le role de chacune de ces sources des revenus par rapport a la baisse de l'ecart des revenus pendant cette periode. Les resultats indiquent que la productivite du travail et les politiques gouvernementales non-spatiales - notamment la modification du salaire minimum et les programmes visant le transfert des revenus - ont un role a jouer pour expliquer la baisse de l'ecart des revenus regionaux pendant la periode en question. Convergence Productivite du travail Transfert des revenus Salaire minimum Effets spatiaux des politiques non-spatiales Silveira Neto R. Da M. und Azzoni C. R. Nicht raumliche Regierungspolitiken und das regionale Einkommensungleichgewicht in Brasilien, Regional Studies. In diesem Beitrag analysieren wir mit Hilfe von Makro- und Mikrodaten die Rolle von sozialen Programmen bei der unlangst erzielten Verringerung des regionalen Einkommensungleichgewichts in Brasilien. Wir stellen Konvergenz-Indikatoren fur verschiedene regionale Einkommensquellen im Zeitraum von 1995 bis 2006 vor. Eine Dekomposition des Gini-Indikators ermoglicht die Identifizierung der jeweiligen Rolle dieser Einkommensquellen fur die Verringerung des regionalen Ungleichgewichts im betreffenden Zeitraum. Die Ergebnisse weisen darauf hin, dass sowohl die Produktivitat der Arbeitskrafte als auch die nicht raumlichen Regierungspolitiken - in erster Linie Veranderungen beim Mindestlohn und Programme fur Einkommenstransfers - als Grunde fur die Verringerung des regionalen Ungleichgewichts in dieser Periode durchaus eine Rolle spielen. Konvergenz Arbeitsproduktivitat Einkommenstransfer Mindestlohn Raumliche Auswirkungen nicht raumlicher Politiken Silveira Neto R. Da M. y Azzoni C. R. Politicas gubernamentales no espaciales y desigualdades de ingresos regionales en Brasil, Regional Studies. En este articulo utilizamos datos macro y micro para analizar el papel de los programas sociales en la reciente reduccion en las desigualdades de ingresos regionales de Brasil. Presentamos los indicadores de convergencia para diferentes fuentes de ingresos regionales en el periodo de 1995 a 2006. Una descomposicion del indice Gini permite identificar el papel de cada una de estas fuentes de ingresos con respecto a la reduccion de las desigualdades regionales durante este periodo. Los resultados destacan que tanto la productividad laboral como las politicas no espaciales del gobierno - principalmente los cambios de salario minimo y los programas de transferencias de ingresos - desempenan una funcion a la hora de explicar la reduccion de las desigualdades regionales durante este periodo. Convergencia Productividad laboral Transferencias de ingresos Salario minimo Efectos espaciales de politicas no espaciales

Suggested Citation

  • Raul Silveira Neto & Carlos Azzoni, 2011. "Non-Spatial Government Policies and Regional Income Inequality in Brazil," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 453-461.
    • Handle: RePEc:taf:regstd:v:45:y:2011:i:4:p:453-461
    DOI: 10.1080/00343400903241485
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    4. Shankar, Raja & Shah, Anwar, 2003. "Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities," World Development, Elsevier, vol. 31(8), pages 1421-1441, August.
    5. Tatiane Almeida de Menezes & Raul da Mota Silveira Neto & Carlos Roberto Azzoni, 2006. "Demografia, Ciclo De Vida E Dinâmica Da Desigualdade Regional De Renda No Brasil," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 28, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    6. Hoffmann, Rodolfo, 2004. "Decomposition of Mehran and Piesch inequality measures by factor components and their application to the distribution of per capita household income in Brazil," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 24(1), May.
    7. Hewings, Geoffrey J.D. & Azzoni, Carlos Roberto & Guilhoto, Joaquim José Martins & Haddad, Eduardo A. & Laes, M. A. & Moreira, Guilherme Renato Caldo, 2007. "Social policies, personal and regional income inequality in Brazil: an I-O analysis of the "Bolsa Família" program," MPRA Paper 54508, University Library of Munich, Germany.
    8. Carlos Azzoni & Raul Silveira-Neto, 2005. "Decomposing regional growth: Labor force participation rates, structural changes, and sectoral factor reallocation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(2), pages 221-239, June.
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    1. Raul da Mota Silveira-Neto & Carlos Roberto Azzoni, 2012. "Social Programs, Industrial Deconcentration and the Recent Decrease in Regional Income Inequality in Brazil," Chapters, in: Werner Baer (ed.), The Regional Impact of National Policies, chapter 4, Edward Elgar Publishing.
    2. Eric ROUGIER & François COMBARNOUS & Yves-André FAURE, 2017. "The ‘local economy’ effect of social transfers: A municipality-level analysis of the local growth impact of the Bolsa Familia Programme in the Brazilian Nordeste," Cahiers du GREThA (2007-2019) 2017-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. David Grover & Swaroop Rao, 2020. "Inequality, unemployment, and poverty impacts of mitigation investment: evidence from the CDM in Brazil and implications for a post-2020 mechanism," Climate Policy, Taylor & Francis Journals, vol. 20(5), pages 609-625, May.
    4. Rodrigo Oliveira & Raul da Mota Silveira Neto, 2021. "Re-examining the Brazilian South-Northeast labour income gap: A decomposition approach," WIDER Working Paper Series wp-2021-117, World Institute for Development Economic Research (UNU-WIDER).
    5. Luiz Carlos De Santana Ribeiro & Edson Paulo Domingues & Fernando Salgueiro Perobelli & Geoffrey John Dennis Hewings, 2018. "Structuring investment and regional inequalities in the Brazilian Northeast," Regional Studies, Taylor & Francis Journals, vol. 52(5), pages 727-739, May.
    6. da Silva Freitas, Lucio Flavio & de Santana Ribeiro, Luiz Carlos & de Souza, Kênia Barreiro & Hewings, Geoffrey John Dennis, 2016. "The distributional effects of emissions taxation in Brazil and their implications for climate policy," Energy Economics, Elsevier, vol. 59(C), pages 37-44.
    7. Barufi, Ana Maria, 2012. "Income Inequality Reduction in Brazil: A Pseudo-panel Approach in the Search of its Determinants," TD NEREUS 11-2012, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    8. Haddad, Eduardo & Mena-Chalco, Jesús & Sidone, Otávio, 2015. "Scholarly Collaboration in Regional Science in Developing Countries: The Case of the Brazilian REAL Network," TD NEREUS 4-2015, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    9. Ferreira Lima, Luis Cristovao, 2013. "A Persistente Desigualdade nas Grandes Cidades Brasileiras: o Caso de Brasília [The Persistent Inequality in the Great Brazilian Cities: The case of Brasília]," MPRA Paper 50936, University Library of Munich, Germany.
    10. Rougier, Eric & Combarnous, François & Fauré, Yves-André, 2018. "The “Local Economy” Effect of Social Transfers: An Empirical Assessment of the Impact of the Bolsa Família Program on Local Productive Structure and Economic Growth," World Development, Elsevier, vol. 103(C), pages 199-215.
    11. Rodrigo C. Oliveira & Raul Da Mota Silveira Net, 2014. "Escolaridade E Políticas De Transferência De Renda Como Condicionantes Da Dinâmica Da Desigualdade Regional De Renda No Brasil: Uma Análise Para O Período 1995-2011," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 174, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    12. Raul M. Silveira-Neto & Carlos R. Azzoni, 2012. "Social Policy As Regional Policy: Market And Nonmarket Factors Determining Regional Inequality," Journal of Regional Science, Wiley Blackwell, vol. 52(3), pages 433-450, August.
    13. Daniela Schettini & Carlos Roberto Azzoni, 2018. "Eficiência produtiva e o futuro das disparidades regionais no Brasil [Productive efficiency and the future of regional disparities in Brazil]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 28(2), pages 347-384, May-Augus.
    14. Danilo Limoeiro, 2015. "Beyond income transfers: The decline of regional inequality in Brazil during the 2000s," Progress in Development Studies, , vol. 15(1), pages 6-21, January.
    15. Xiao Yan & Saidatulakmal Mohd, 2023. "Trends and Causes of Regional Income Inequality in China," Sustainability, MDPI, vol. 15(9), pages 1-18, May.
    16. Raul Silveira Neto & Carlos Azzoni, 2011. "Measuring the Contribution of Social Policies to Regional Inequality Dynamic in Brazil," ERSA conference papers ersa11p659, European Regional Science Association.
    17. Ferreira Lima, Luis Cristovao, 2013. "The Persistent Inequality in the Great Brazilian Cities: The Case of Brasília," MPRA Paper 50938, University Library of Munich, Germany.
    18. Philip Arestis & Peter Phelps, 2019. "A panel analysis of Brazilian regional inequality," Environment and Planning A, , vol. 51(7), pages 1558-1585, October.

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