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What Explains the Decline in Brazil?s Inequality?

Author

Listed:
  • Degol Hailu

    () (UNDP SURF)

  • Sergei Suarez Dillon Soares

    () (Institute of Applied Economic Research (IPEA))

Abstract

The economics profession has long debated whether there is a trade-off between growth and equity. Countries that pursued inequality-reducing strategies have been warned that growth will be affected, and hence that poverty increases. The harbingers of doom advocated a growth-focused strategy. Their assumption was that the income of the poor rises in direct proportion to economic growth. The truth is more like this: economies with more equal income distribution are likely to achieve higher rates of poverty reduction than very unequal countries. In this One Pager we consider if this is the case in Brazil.

Suggested Citation

  • Degol Hailu & Sergei Suarez Dillon Soares, 2009. "What Explains the Decline in Brazil?s Inequality?," One Pager 89, International Policy Centre for Inclusive Growth.
  • Handle: RePEc:ipc:opager:89
    as

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    File URL: http://www.ipc-undp.org/pub/IPCOnePager89.pdf
    File Function: First version, 2009
    Download Restriction: no

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