Macroeconomic performance and poverty in Brazil

Orlando Sotomayor

Journal of Development Studies, 2006, vol. 42, issue 1, 139-157

Abstract: Drawing on Brazilian time-series data this study finds an inelastic link between poverty and wages over the macroeconomic cycle that is devoid of the asymmetric effects that characterise the phenomenon's response to changes in the rate of unemployment. Deepening of structural reforms in the second half of the 1990s had no effect on the aforementioned relationships, which also varied little by regional level of development. Finally, the connection between poverty and long-term income changes was more elastic, suggesting an association between the economy's recent disappointing performance in alleviating poverty and its lacklustre growth record over the past two decades.

Date: 2006
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DOI: 10.1080/00220380500356811

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