Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27453
Year of Publication: 
2007
Series/Report no.: 
IAI Discussion Papers No. 163
Publisher: 
Georg-August-Universität Göttingen, Ibero-America Institute for Economic Research (IAI), Göttingen
Abstract: 
We examine how macroeconomic performance, mainly in the role of high rates of inflation, affected earnings inequality in the 1980s and early 1990s in Brazil. The results–based initially on national timeseries, and then on the relatively novel sub-national panel time-series T N data and analysis–show that the extreme inflation, combined with the incomplete indexation coverage seen at the time, had a regressive and significant impact on inequality. Thus, sound macroeconomic policies, which keep inflation low and stable in the long run, are to be a necessary first step of any policy package implemented to alleviate inequality in Brazil.
JEL: 
D31
E31
O11
O54
Document Type: 
Working Paper

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