Income Inequalities in Brazil: Interregional, Interstate Within Regions and Interpersonal Within States
Carlos Roberto Azzoni
University of Sao Paulo (USP) - Department of Economics
Pesquisa E Planejamento Economico (Economic Planning and Research)
Income inequalities in Brazil are well known, both in their personal and regional aspects and specific partial studies are abundant. However, few effort was made to integrate the analysis into one sole framework. The purpose of the paper is to decompose total income inequality into three components: interregional, intraregional and interpersonal within regions, and to assess the importance of each of them in the making up of total income inequality in Brazil. An income inequality index will be constructed that decomposes total inequality into the three components mentioned in the title. Data for personal and regional income inequality for different years will be considered to calculate the components and an analysis of their evolution over time will be developed. The study will make it possible to analyze important topics such as: a) Is personal income inequality worse of in poorer or richer states? How did the regional differentiation of personal income inequality evolve over time? b) Would a policy of equalization of regional income increase or diminish interpersonal income inequalities in the country? c) Would a policy of equalization of personal income increase or diminish interregional income inequalities in the country? d) What are the side effects in terms of personal income inequalities of the expected spatial concentration of economic activity resulting from the globalization of the national economy and from the new role of the state in national development (neo liberalism)?
JEL Classification: N16, N36, R19Accepted Paper Series
Date posted: October 23, 1997
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