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Macroeconomic Performance and Inequality: Brazil 1983-94

  • Manoel F. Meyer Bittencourt

    ()

    (University of Bristol / UK)

We examine how macroeconomic performance, mainly in the role of inflation, affected earnings inequality during the 1980’s and early 90’s in regional Brazil. The evidence shows that the high and volatile inflation rates existent at the time, combined with incomplete indexation coverage, had a regressive and significant effect on inequality. The results, based on panel time series T>N data and analysis, are robust for different concepts of inflation, inequality measures, estimators and specifications. Hence, sound macroeconomic policies, which keep inflation low and stable in the long run, are to be a necessary first step of any policy implemented to alleviate high inequality, and improve welfare in Brazil.

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File URL: http://www2.vwl.wiso.uni-goettingen.de/ibero/working_paper_neu/DB130.pdf
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Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 130.

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Length: 24 pages
Date of creation: 16 Nov 2005
Date of revision:
Handle: RePEc:got:iaidps:130
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