The State and income inequality in Brazil
Using a factor decomposition of the Gini coefficient we measure the contribution to inequality of direct monetary income flows to and from the Brazilian State. The income flows from the State include public servants’ earnings, Social Security pensions, unemployment benefits and Social Assistance transfers. The income flows to the State comprise direct taxes and employees’ social security contributions. Data comes from the Brazilian POF 2008-9. The results indicate that the State contributes directly to a very large share of inequality. Factors associated to work in the public sector – wages and pensions – are very concentrated and regressive. Factors related to the private sector are still concentrated, but progressive. Contrary to what has been found in other countries, public spending with work and social policies is concentrated in the elites and, taken as a whole, tends to increase inequality. Redistributive mechanisms that could reverse this inequality, such as taxes and social assistance, are very progressive but proportionally small; consequently their effect is completely offset by the regressive income flows from the State. Por meio de uma decomposição do coeficiente de Gini mede-se a contribuição para a desigualdade dos fluxos diretos de rendimento de e para o Estado no Brasil. Os fluxos de rendimento do Estado incluem a renda dos trabalhadores no setor público, aposentadorias e pensões, seguro-desemprego e rendimentos associados e transferências da assistência social. Os fluxos de rendimento para o Estado incluem os impostos diretos e as contribuições previdenciárias. Os dados são provenientes da Pesquisa de Orçamentos Familiares (POF) 2008-9. Os resultados indicam que o Estado contribui diretamente para uma grande parcela da desigualdade. As componentes associadas ao trabalho no setor público – salários, aposentadorias e pensões – são muito concentradas e regressivas. As componentes associadas ao setor privado também são concentradas, porém progressivas.
(This abstract was borrowed from another version of this item.)
|Date of creation:||11 Nov 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 2521 Channing Way # 5555, Berkeley, CA 94720-5555|
Web page: http://www.escholarship.org/repec/iir_iirwps/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-40, September.
- Fuest, Clemens & Niehues, Judith & Peichl, Andreas, 2009. "The Redistributive Effects of Tax Benefit Systems in the Enlarged EU," IZA Discussion Papers 4520, Institute for the Study of Labor (IZA).
- Panizza, Ugo & Qiang, Christine Zhen-Wei, 2005. "Public-private wage differential and gender gap in Latin America: Spoiled bureaucrats and exploited women?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(6), pages 810-833, December.
- Blau, Francine D & Kahn, Lawrence M, 1996.
"International Differences in Male Wage Inequality: Institutions versus Market Forces,"
Journal of Political Economy,
University of Chicago Press, vol. 104(4), pages 791-836, August.
- Francine D. Blau & Lawrence M. Kahn, 1994. "International Differences in Male Wage Inequality: Institutions versus Market Forces," NBER Working Papers 4678, National Bureau of Economic Research, Inc.
- Daniele Checchi & Cecilia García Peñalosa, 2005.
"Labour Market Institutions and the Personal Distribution of Income in the OECD,"
UNIMI - Research Papers in Economics, Business, and Statistics
unimi-1009, Universitá degli Studi di Milano.
- Daniele Checchi & Cecilia García-Peñalosa, 2010. "Labour Market Institutions and the Personal Distribution of Income in the OECD," Economica, London School of Economics and Political Science, vol. 77(307), pages 413-450, 07.
- Checchi, Daniele & García-Peñalosa, Cecilia, 2005. "Labour Market Institutions and the Personal Distribution of Income in the OECD," IZA Discussion Papers 1681, Institute for the Study of Labor (IZA).
- Daniele Checchi & Cecilia Garcìa-Peñalosa, 2008. "Labour market institutions and the personal distribution of income in the OECD," Working Papers halshs-00341005, HAL.
- Daniele Checchi & Cecilia Garcia-Peñalosa, 2005. "Labour Market Institutions and the Personal Distribution of Income in the OECD," CESifo Working Paper Series 1608, CESifo Group Munich.
- repec:pai:wpaper:07-23 is not listed on IDEAS
- Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
- Siegfried Bender & Reynaldo Fernandes, 2009. "Gastos Públicos com Pessoal: Uma Análise de Emprego e Salário no Setor Público Brasileiro nos Anos 90," Economia, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 10(1), pages 19-47.
- Sergei Soares & Rafael Guerreiro Osório & Fábio Veras Soares & Marcelo Medeiros & Eduardo Zepeda, 2009.
"Conditional cash transfers in Brazil, Chile and Mexico: impacts upon inequality,"
El Colegio de México, Centro de Estudios Económicos, vol. 0(Special i), pages 207-224.
- Sergei Suarez Dillon Soares & Rafael Guerreiro Osório & Fabio Veras Soares & Marcelo Medeiros & Eduardo Zepeda, 2007. "Conditional Cash Transfers in Brazil, Chile and Mexico: Impacts upon Inequality," Working Papers 35, International Policy Centre for Inclusive Growth.
- Anthony C. Atkinson, 2003.
"Income Inequality in OECD Countries: Data and Explanations,"
CESifo Working Paper Series
881, CESifo Group Munich.
- A. B. Atkinson, 2003. "Income Inequality in OECD Countries: Data and Explanations," CESifo Economic Studies, CESifo, vol. 49(4), pages 479-513.
- Gerardo Esquivel, 2010.
"The dynamics of income inequality in Mexico since NAFTA,"
Serie documentos de trabajo del Centro de Estudios Económicos
2010-09, El Colegio de México, Centro de Estudios Económicos.
- Gerardo Esquivel, 2011. "The Dynamics of Income Inequality in Mexico since NAFTA," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2011), pages 155-188, August.
- Graham Pyatt & Chau-nan Chen & John Fei, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 451-473.
- Clemens Fuest & Judith Niehues & Andreas Peichl, 2010. "The Redistributive Effects of Tax Benefit Systems in the Enlarged EU," Public Finance Review, SAGE Publishing, vol. 38(4), pages 473-500, July.
- Foguel, Miguel N. & Gill, Indermit & Mendonça, Rosane & Barros, Ricardo Paes de, 2000.
"The Public-Private Wage Gap in Brazil,"
Revista Brasileira de Economia,
FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 54(4), October.
- Goudswaard, Kees & Caminada, Koen, 2008. "The redistributive impact of public and private social expenditure," MPRA Paper 20178, University Library of Munich, Germany.
- Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
- Belluzzo, Walter & Anuatti-Neto, Francisco & Pazello, Elaine T., 2005. "Distribuição de Salários e o Diferencial Público-Privado no Brasil," Revista Brasileira de Economia, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 59(4), October.
- Pablo de Pedraza & Rafael Muñoz de Bustillo & Luis Alberto Rivas, 2009. "Ageing Population and Spanish Pension System Reforms: Effects on Average Pensions and Inequality Among Pensioners," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 8, pages 1-28, September.
When requesting a correction, please mention this item's handle: RePEc:cdl:indrel:qt584222f0. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lisa Schiff)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.