Poverty and Inequality in Brazil

Abstract

As a result of data discrepancies, it can be difficult to reach conclusions about the magnitude of poverty and inequality and their trends over time. Since data on poverty and inequality are often used to evaluate social programs and formulate policy, it is important to understand these inconsistencies. Therefore, the objectives of this paper are as follows: first, to identify the sources of data on poverty and inequality in Brazil; second, to compare poverty and inequality for the period 1985 to 2007 from the different data sources and attempt to identify what might explain the observed discrepancies in both levels and trends; third, to analyze what happened to poverty during the economic crisis of 1990-1992, when gross domestic product (GDP) per capita fell at 2.7% per year on average; and fourth, to analyze an observed fall in poverty and inequality since 2001 and assess the impact of Bolsa Familia, a conditional cash transfer (CCT) program implemented in 2003 .