Effects of economic growth and income inequality on poverty in Brazil

Abstract

The present study aims to calculate the income and inequality of poverty elasticities in Brazil considering the census situation. Data between 2004 and 2014 were used for the urban and rural environments of the Brazilian Federative Units and a panel data estimation with a threshold effect was utilized. It has been concluded that increases in growth reduce poverty in urban and rural areas, while rising inequalities increase poverty in these places. It was also concluded that poverty reduction policies should consider the census situation and the growth levels of each Federation unit.