Desenvolvimento Econômico e Desigualdade de Renda no Brasil

Abstract

This paper investigates the relationship between household income inequality and economic development in Brazil controlling for a large number of explanatory variables, which were divided into three groups: individuals’ inherent characteristics, individuals’ acquired characteristics and a set of characteristics related to the economic environment of the country. By using the household revenue concept to urban areas only, the methodological econometric framework was based upon a simultaneous equation models applied to cross-sectional data for brazilian states with some extensions to different revenue percentiles. The results corroborate with some studies, but contradict several others, concerning labor market segmentation, discrimination and education access and their impacts over inequality, besides showing relevant effects about government intervention. It is also found that some of those particular variables affect in different ways the income inequality in each income percentile. Key words: Household Income Inequality, Level of Economic Activity, Brazil.