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Growing Apart: Inequality and Poverty Trends in Brazil in the 1980s

Author

Listed:
  • Francisco H.G. Ferreira
  • Julie Litchfield

Abstract

This paper analyses the evolution of inequality and poverty in Brazil during the 1980s, using a large repeated cross-section household survey data set. We calculate standard scalar measures of inequality and poverty, together with decile means and decile shares. We also present percentile statistics in the form of Pen?s Parades, Lorenz and Generalised Lorenz curves. First and second order stochastic dominance results are reported for a number of distributions, and statistical tests are performed to infer population dominance, generating robust welfare and inequality comparisons. Analogously, mixed stochastic dominance is used in poverty comparisons. Sensitivity of the measures and of the observed trends to the equivalence scale used is investigated. The main finding is that inequality worsened unambiguously, although not monotonically, during the 1980s. Poverty also rose, despite some growth in mean reported incomes, but its behaviour was more cyclical than that of inequality.

Suggested Citation

  • Francisco H.G. Ferreira & Julie Litchfield, 1996. "Growing Apart: Inequality and Poverty Trends in Brazil in the 1980s," STICERD - Distributional Analysis Research Programme Papers 23, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stidar:23
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    Citations

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    Cited by:

    1. Andre Portela Souza, 2002. "Wage Inequality Changes in Brazil: Market Forces, Macroeconomic Instability and Labor Market Institutions (1981-1997)," Vanderbilt University Department of Economics Working Papers 0215, Vanderbilt University Department of Economics.
    2. Francisco de Hollanda Guimarães Ferreira & Peter Lanjouw & Marcelo Neri, 2000. "A new poverty profile for Brazil using PPV, PNAD and census data," Textos para discussão 418, Department of Economics PUC-Rio (Brazil).
    3. Ferreira, Francisco H G & Litchfield, Julie A, 1999. "Calm after the Storms: Income Distribution and Welfare in Chile, 1987-94," The World Bank Economic Review, World Bank, vol. 13(3), pages 509-538, September.

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