Neither Here nor There: Regionally Targeted Social Policy or Socially Targeted Regional Policy? The First Four Years of Lula’s Administration

23 Pages Posted: 3 Jul 2011 Last revised: 3 Aug 2011

Carlos Roberto Azzoni

University of Sao Paulo (USP) - Department of Economics

Joaquim Guilhoto

University of Sao Paulo

Eduardo A. Haddad

University of Sao Paulo (USP) - Department of Economics; University of Illinois at Urbana-Champaign - Regional Economics, Application Labratory, REAL

Geoffrey J.D. Hewings

University of Illinois at Urbana-Champaign

Marco Antonio Laes

affiliation not provided to SSRN

Guilherme Renato Caldo Moreira

Federação das Insdústrias de São Paulo (FIESP)

Date Written: June 10, 2011

Abstract

The study presents a Leontief-Miyazawa model to study personal and regional income inequality in Brazil. The economy is divided into 21 sectors, in 5 macro regions; households are allocated into 10 income brackets. The study identifies the contribution of different sectors to inequality. The model is used to simulate the capacity of social policies to reduce personal and regional inequality in the country. The analysis is conducted using the pro-poor “Bolsa Família” program which is a social program that provides direct income transfers to poor (with per capita income between BRL 60.01 and BRL 120.00) and extremely poor households (with per capita income below BRL 60.00). The results show that in the short run, the “Bolsa Família” program has proven to produce positive results, both at the personal income level and at the regional concentration level, and has surely paid large dividends in electoral terms. Solving inequality problems, however, might require other mid and long run policies that could improve the competitiveness of lagging regions.

Keywords: Social Policies, Input-Output, Brazil, Income Distribution

JEL Classification: D57, R58, D31, O54

Suggested Citation

Azzoni, Carlos Roberto and Guilhoto, Joaquim and Haddad, Eduardo A. and Hewings, Geoffrey J.D. and Laes, Marco Antonio and Moreira, Guilherme Renato Caldo, Neither Here nor There: Regionally Targeted Social Policy or Socially Targeted Regional Policy? The First Four Years of Lula’s Administration (June 10, 2011). Available at SSRN: https://ssrn.com/abstract=1862388 or http://dx.doi.org/10.2139/ssrn.1862388

Carlos Roberto Azzoni

University of Sao Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo SP, 05508-900
Brazil
+55 11 818-5870 (Phone)
+55 11 813-4743 (Fax)

Joaquim José Martins Guilhoto (Contact Author)

University of Sao Paulo ( email )

Av. Prof. Luciano Gualberto, 908
FEA2
Sao Paulo, 05508-010
Brazil
+ 55 011 3091-5870 (Phone)
+ 55 011 3813-4743 (Fax)

Eduardo A. Haddad

University of Sao Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo, SP 05508-900
Brazil

HOME PAGE: http://www.usp.br/nereus

University of Illinois at Urbana-Champaign - Regional Economics, Application Labratory, REAL ( email )

United States

Geoffrey J.D. Hewings

University of Illinois at Urbana-Champaign ( email )

318 Davenport Hall
607 S. Mathews
Urbana, IL 61801-3671
United States
217-333-4740 (Phone)

HOME PAGE: http://real.illinois.edu

Marco Antonio Laes

affiliation not provided to SSRN ( email )

Guilherme Renato Caldo Moreira

Federação das Insdústrias de São Paulo (FIESP) ( email )

São Paulo
Brazil

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