- The Oxford Handbook of the Brazilian Economy
- The Colonial Economy
- The Nineteenth and Early Twentieth Centuries
- Brazilian Structuralism
- Brazil’s Import-Substitution Industrialization
- Experiences of Inflation and Stabilization, 1960–1990
- Leviathan Captured Neoliberalism as Solution and Problem in Brazil
- Growth Volatility and Economic Growth in Brazil
- The Brazilian Development Bank
- The Evolution of Brazil’s Banking System
- Brazil’s Macroeconomic Policy Institutions, Quasi-Stagnation, and the Interest Rate–Exchange Rate Trap
- Evolution and Sectoral Competitiveness of the Brazilian Manufacturing Industry
- The Agricultural Sector
- Traditional Agriculture and Land Distribution in Brazil
- Brazil’s Agricultural Modernization and Embrapa
- Manufacturing, Services, and the Productivity Gap
- Energy in Brazil: Past and Future
- Trade Policy from the 1930s to the Present
- Regional Disparities
- Brazil’s Northeast
- Changes in Income Distribution in Brazil
- The Development of Brazilian Education: A Tale of Lost Opportunities?
- Anti-Poverty Transfers and Poverty Reduction
- South-South Cooperation for Social Development: Brazil and Africa Examined
- Labor Market Development in Brazil: Formalization at Last?
- Environmental Issues
- The Economics of Health in Brazil
- Brazil, the BRICS, and the Changing Landscape of Global Economic Governance
- Brazilian Trade and International Economic Prospects in an Anti-Globalization Era
- The Evolution of Foreign Direct Investment in Brazil
- Multinational Corporations from Brazil
- The Rise and Fall of State Enterprises
- Antitrust and Competition Policy in Brazil
- Corruption Scandals, the Evolution of Anti-Corruption Institutions, and Their Impact on Brazil’s Economy
Abstract and Keywords
Income inequality in Brazil, already high, increased after the military coup of 1964 and remained very high even after democratization in the 1980s. It decreased substantially in the period 2001–2014, after inflation was controlled. The Gini index of the per capita household income dropped from 0.594 in 2001 to 0.513 in 2014. The determinants of this decline in inequality are analyzed considering the components of that income and how each one affected changes in inequality, showing the impact of changes in the remuneration of private sector employees and in pensions paid by the government, as well as federal transfer programs. Changes in education lie behind the first of these effects, and the increase of the minimum wage reinforced all three. The economic crises after 2014 interrupted the process of decline, and among economically active persons, inequality even increased from 2014 to 2015. Measures to further reduce inequality are suggested.
Rodolfo Hoffmann, Professor of Economics, Faculty of Economics and Administration, University of São Paulo, Esalq; and University of Campinas
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