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Sources of Welfare Disparities across and within Regions of Brazil: Evidence from the 2002-03 Household Budget Survey

  • Skoufias, Emmanuel

    ()

    (The World Bank)

  • Katayama, Roy

    (The World Bank)

Brazil's inequalities in welfare and poverty across and within regions can be accounted for by differences in household attributes and returns to those attributes. This paper uses Oaxaca-Blinder decompositions at the mean as well as at different quantiles of welfare distributions on regionally representative household survey data (2002-03 Household Budget Survey). The analysis finds that household attributes account for most of the welfare differences between urban and rural areas within regions. However, comparing the lagging Northeast region with the leading Southeast region, differences in returns to attributes account for a large part of the welfare disparities, in particular in metropolitan areas, supporting the presence of agglomeration effects in booming areas.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4803.

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Length: 40 pages
Date of creation: 02 Feb 2009
Date of revision:
Handle: RePEc:wbk:wbrwps:4803
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  1. Krugman, Paul, 1998. "What's New about the New Economic Geography?," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 7-17, Summer.
  2. Nguyen, Binh T. & Albrecht, James W. & Vroman, Susan B. & Westbrook, M. Daniel, 2007. "A quantile regression decomposition of urban-rural inequality in Vietnam," Journal of Development Economics, Elsevier, vol. 83(2), pages 466-490, July.
  3. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  4. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
  5. Ravi Kanbur, 2006. "The policy significance of inequality decompositions," Journal of Economic Inequality, Springer, vol. 4(3), pages 367-374, December.
  6. Anthony J. Venables, 2005. "Spatial disparities in developing countries: cities, regions, and international trade," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 3-21, January.
  7. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  8. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
  9. Ferreira, Pedro Cavalcanti Gomes & Salvato, Márcio Antônio & Duarte, Angelo José Mont'Alverne, 2004. "Regional or educational disparities? A counterfactual exercise," Economics Working Papers (Ensaios Economicos da EPGE) 532, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  10. World Bank, 2007. "Brazil : Measuring Poverty Using Household Consumption," World Bank Other Operational Studies 8037, The World Bank.
  11. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
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