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A new poverty profile for Brazil using PPV, PNAD and census data

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  • Francisco de Hollanda Guimarães Ferreira

    () (Department of Economics PUC-Rio)

  • Peter Lanjouw
  • Marcelo Neri

Abstract

This paper contains a poverty profile for Brazil, based on 1996 data. Poverty measures and shares are presented for a wide range of population subgroups, based on household level data from the PNAD 1996, adjusted for imputed rents and spatial differences in cost of living. Robustness of the profile is verified with respect to different poverty lines, different spatial price deflators, and different equivalence scales. Overall poverty incidence ranges from 23% with respect to an indigence line (15% for urban areas) to 45% with respect to a more generous poverty line (37% for urban areas). More importantly however, poverty is found to vary significantly across regions and city sizes, with rural areas, small and medium towns and the metropolitan peripheries of the North and Northeast regions being poorest. In addition, education, race and the labor status of the household head are important correlates of vulnerability. The marginal impact of each of these attributes, controlling for all others, is investigated through probit regressions run on PPV data. These confirm the importance of spatial variables, but suggest that education remains the central personal attribute determining the likelihood that a household experiences poverty. Some tentative recommendations to improve the quality of the available data sets are also made.

Suggested Citation

  • 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).
  • Handle: RePEc:rio:texdis:418
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    References listed on IDEAS

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    1. 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.
    2. Hentschel, Jesko & Lanjouw, Jean Olson & Lanjouw, Peter & Poggi, Javier, 1998. "Combining census and survey data to study spatial dimensions of poverty," Policy Research Working Paper Series 1928, The World Bank.
    3. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
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    7. Quisumbing, Agnes R. & Haddad, Lawrence James & Peña, Christine, 1995. "Gender and poverty," FCND discussion papers 9, International Food Policy Research Institute (IFPRI).
    8. Lanjouw, Jean Olson & Lanjouw, Peter, 1997. "Poverty comparisons with non-compatible data: theory and illustrations," Policy Research Working Paper Series 1709, The World Bank.
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    Cited by:

    1. Enamorado, Ted & López-Calva, Luis F. & Rodríguez-Castelán, Carlos & Winkler, Hernán, 2016. "Income inequality and violent crime: Evidence from Mexico's drug war," Journal of Development Economics, Elsevier, vol. 120(C), pages 128-143.
    2. Neumark, David & Cunningham, Wendy & Siga, Lucas, 2006. "The effects of the minimum wage in Brazil on the distribution of family incomes: 1996-2001," Journal of Development Economics, Elsevier, vol. 80(1), pages 136-159, June.
    3. Kosec, Katrina, 2014. "Relying on the private sector: The income distribution and public investments in the poor," Journal of Development Economics, Elsevier, vol. 107(C), pages 320-342.
    4. Francisco de Hollanda Guimarães Ferreira & Peter Lanjouw, 2000. "Rural non-agricultural activities and poverty in the Brazilian northeast," Textos para discussão 428, Department of Economics PUC-Rio (Brazil).
    5. Helena Cruz Castanheira & Ana Maria Hermeto Camilo de Oliveira, 2008. "Uma Proposta De Identificaçao De Perfis De Condiçoes De Vida Dos Domicílios De Minas Gerais Através Da Pesquisa De Orçamentos Familiares 2002/2003," Anais do XIII Seminário sobre a Economia Mineira [Proceedings of the 13th Seminar on the Economy of Minas Gerais],in: Anais do XIII Seminário sobre a Economia Mineira [Proceedings of the 13th Seminar on the Economy of Minas Gerais] Cedeplar, Universidade Federal de Minas Gerais.
    6. Verner, Dorte, 2008. "Making poor Haitians count--poverty in rural and urban Haiti based on the first household survey for Haiti," Policy Research Working Paper Series 4571, The World Bank.
    7. Ferreira, Francisco H. G. & Lanjouw, Peter, 2001. "Rural Nonfarm Activities and Poverty in the Brazilian Northeast," World Development, Elsevier, vol. 29(3), pages 509-528, March.
    8. François Bourguignon & Francisco de Hollanda Guimarães Ferreira, 2000. "Understanding inequality in Brazil: a conceptual overview," Textos para discussão 434, Department of Economics PUC-Rio (Brazil).
    9. Campos, Roberio Telmo & Campos, Kilmer Coelho, 2008. "Análise Das Medidas De Renda, Distribuição E Pobreza Dos Municípios Da Área De Influência Da Barragem Castanhão Ceará," 46th Congress, July 20-23, 2008, Rio Branco, Acre, Brasil 102219, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    10. Brooks, Jonathan & Melyukhina, Olga, 2003. "The Effects of Agricultural Policy Reform on Poverty in Brazil," Policy Reform and Adjustment Workshop, October 23-25, 2003, Imperial College London, Wye Campus 15752, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    11. Rafael Perez Ribas & Ana Flávia Machado, 2007. "Distinguishing Chronic Poverty from Transient Poverty in Brazil: Developing a Model for Pseudo-Panel Data," Working Papers 36, International Policy Centre for Inclusive Growth.
    12. José Márcio Camargo & Francisco de Hollanda Guimarães Ferreira, 2001. "O Benefício Social Único: uma proposta de reforma da política social no Brasil," Textos para discussão 443, Department of Economics PUC-Rio (Brazil).
    13. Rafael Perez Ribas & Ana Flávia Machado & André Braz Golgher, 2006. "Fluctuations and persistence in poverty: a transient-chronic decomposition model for pseudo-panel data," Textos para Discussão Cedeplar-UFMG td290, Cedeplar, Universidade Federal de Minas Gerais.
    14. Ferreira, Francisco H. G. & Lanjouw, Peter & Neri, Marcelo Côrtes, 2003. "A Robust Poverty Profile for Brazil Using Multiple Data Sources," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 57(1), January.
    15. Fiess, Norbert M. & Verner, Dorte, 2003. "Migration and human capital in Brazil during the 1990s," Policy Research Working Paper Series 3093, The World Bank.
    16. Kosec, Katrina, 2011. "Politics and preschool : the political economy of investment in pre-primary education," Policy Research Working Paper Series 5647, The World Bank.
    17. World Bank, 2007. "Brazil : Measuring Poverty Using Household Consumption," World Bank Other Operational Studies 8037, The World Bank.
    18. Fiess, Norbert M. & Verner, Dorte, 2004. "The dynamics of poverty and its determinants - the case of the Northeast of Brazil and its states," Policy Research Working Paper Series 3259, The World Bank.
    19. Gabriel Palma, 2000. "The Magical Realism of Brazilian Economics: How to Create a Financial Crisis by Trying to Avoid One," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2000-16, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    20. Verner, Dorte, 2008. "Labor markets in rural and urban Haiti--based on the first household survey for Haiti," Policy Research Working Paper Series 4574, The World Bank.
    21. World Bank, 2013. "Nepal : Small Area Estimation of Poverty, 2011," World Bank Other Operational Studies 16569, The World Bank.
    22. World Bank, 2002. "Brazil : Growth and Poverty Reduction in Pernambuco," World Bank Other Operational Studies 15444, The World Bank.

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