Income inequality in Brazil between 2019 and 2022: evolution of the sum of income and decomposition of the Gini coefficient based on the continuous PNAD
Abstract
Income inequality in Brazil from 2019 to 2022 showed erratic behavior. From 2019 to 2020, inequality dropped. From 2020 to 2021, it rose. And from 2021 to 2022, it dropped again. In order to understand this behavior and investigate which factors contributed to it, data from the PNAD Contínua were explored using two approaches: 1) evolution of the income mass according to the different sources of income and the decile stratification of people based on effective income per capita; and 2) decomposition of the Gini coefficient, as well as its year-to-year variation, according to income sources. The estimates reveal the importance of social programs (Bolsa Família and Auxílio Emergencial) to explain income inequality in the country between 2019 and 2021, and of income from work to explain what happened in 2022.
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