Brazil : Inequality and Economic Development, Volume 1. Policy Report

World Bank

Brazil : Inequality and Economic Development, Volume 1. Policy Report

Autores

World Bank

Editor

Washington, DC

Descripción

The present Report is motivated by the coming together o f three widespread perceptions about inequality, two somewhat newer and one long-standing. The two newer ones are; (i) that inequality may matter for the country's economic development, and (ii) that public policy can and should do something about it. The old perception, which is well borne out b y the facts, is that Brazil occupies a position o f very high inequality in the international community. Therefore, this report tries to explain what makes Brazil so unequal and to what extent the interaction o f labor market forces and public policies -or the lack of them- contribute to this undesirable outcome. For instance, in what measure is social mobility becoming more independent o f family background thanks to progressive public policies in basic education, health and nutrition. Accordingly, the report is organized around three basic questions. The first section asks why inequality might matter for the country's economic development. Why it matters for poverty reduction, for social justice equality o f opportunities and social mobility, and for economic and political efficiency. The second section asks why Brazil is so unequal. It seeks a deeper understanding of what lies behind Brazil's position as one of the most unequal countries in the world, as shown in typical international comparisons, the dynamics of income inequality, and the magnitude of inequality across regions, racial groups, and gender. Then, it attempts to shed light on why this may be so. It investigates the causes of Brazil's excess inequality in four dimensions: the distribution of assets - human and nonhuman-, the price of those assets, the behavioral difference in the labor market and fertility, and, finally, the distribution of state transfers and entitlements - public expenditure and taxation-. The third section asks whether there is a role for public action aimed at reducing inequalities, and considers some lessons from theory and evidence on the relative effectiveness of alternative approaches. First, it considers how the provision of education might affect not only the distribution of human assets in the long run but the relative prices of human capital for different levels of skill. Second it examines how public policy toward rural land use must take into account inefficiencies that are closely linked to inequities of land distribution. Finally, it investigates how taxation and public expenditure policies reduce income inequality and inequality of access to basic social services. The fourth section concludes.

Palabras clave

SOCIAL JUSTICE, EQUAL OPPORTUNITY, EQUAL TREATMENT, EQUAL ACCESS, EQUALITY BEFORE THE LAW, INEQUITIES IN RELIEF DISTRIBUTION, SOCIAL EXPENDITURES, EQUITY IN EDUCATION, ACCESS TO EDUCATION, RACIAL DISCRIMINATION, RACIAL SEGREGATION, EQUITABLE ACCESS, PUBLIC POLICY, EDUCATIONAL ACHIEVEMENT, WAGE DIFFERENTIATION, EDUCATIONAL IMPROVEMENT, INCOME INEQUALITIES, RURAL LAND USE, TAX POLICY, PENSION SYSTEMS, ACCESS TO HEALTH CARE, ACCESS TO HEALTH SERVICES, HOUSING AFFORDABILITY, REGRESSIVE TAXES, EMPLOYMENT SKILLS ASSET DISTRIBUTION, AVERAGE INCOME, CAPITAL INVESTMENT, CASH TRANSFER PROGRAMS, CREDIT PROGRAMS, DATA SET, DATA SETS, DEMOGRAPHIC TRANSITION, DIVIDENDS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC THEORY, ECONOMISTS, EMPIRICAL FINDINGS, ENTITLEMENTS, EQUITABLE DISTRIBUTION, EXPENDITURE POLICIES, EXPENDITURES, EXTERNAL COSTS, GDP, GINI COEFFICIENT, GROSS DOMESTIC PRODUCT, HEALTH OUTCOMES, HIGH INCOME INEQUALITY, HIGH INEQUALITY, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD SURVEY DATA, HUMAN CAPITAL, INCOME, INCOME, INCOME DIFFERENCES, INCOME DISPARITIES, INCOME DISTRIBUTION, INCOME GROUPS, INCOME INEQUALITY, INCOME SHARE, INCOME TAXATION, INEQUALITY, INEQUALITY, INEQUALITY REDUCTION, INTERNATIONAL COMPARISONS, INTERVENTIONS, LABOR DEMAND, LABOR FORCE, LABOR INCOME, LABOR MARKET, LAND INEQUALITY, LAND USE, LIFE EXPECTANCY, LIVING CONDITIONS, LONG-TERM PERSPECTIVE, LOW INCOME, MARKET INCOMES, OLD AGE, PENSIONS, PER CAPITA INCOME, PERSISTENT INEQUALITY, POLICY IMPLICATIONS, POOR, POOR PEOPLE, POPULATION SHARE, POVERTY INCIDENCE, POVERTY MEASURES, POVERTY RATE, POVERTY REDUCTION, PRIVATE SECTOR, PRODUCTIVITY, PROGRAMS, PUBLIC EXPENDITURE, PUBLIC POLICIES, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SPENDING, PUBLIC TRANSFERS, QUALITY GROWTH, REDISTRIBUTIVE IMPACT, REDUCING INEQUALITY, REDUCING POVERTY, REGIONAL DIFFERENCES, REGRESSIVE TRANSFERS, RELATIVE PRICES, RELATIVE WAGES, SECTOR EMPLOYEES, SKILL LEVEL, SKILL PREMIUM, SKILLED LABOR, SKILLED WORKERS, SOCIAL ASSISTANCE, SOCIAL MOBILITY, SOCIAL POLICIES, SOCIAL POLICY, SOCIAL PROGRAMS, SOCIAL PROGRESS, SOCIAL SECURITY, SOCIAL SPENDING, TARGETING, TAX RATES, TAX REFORM, TAX REFORMS, TAX REVENUE, TECHNOLOGICAL CHANGE, TRADEOFFS, WAGE DIFFERENTIALS, WELFARE EFFECTS, WELL-BEING