Poverty and income inequality in Belo Horizonte: an analysis by place of residence

Authors

  • Maria Laura de Resende Paiva FACE/UFMG.
  • André Braz Golgher FACE/UFMG

DOI:

https://doi.org/10.5380/re.v35i2.17202

Keywords:

favelas, desigualdade de renda, escolaridade, pobreza.

Abstract

Brazil is one of the most unequal countries regarding incomedistribution. A consequence of this inequality is that although Brazil is a middleincome country, poverty levels are quite high when compared to countries with similar per capita income levels. This paper discusses these subjects for themunicipally of Belo Horizonte. In order to do so, we compared the normal sectorwith the special or subnormal one, which is composed by slums and comparableareas. We estimated Micerian income equations for workers in both residentialsectors so as to apprehend if there were differences in wages that were correlatedwith place of residence. Moreover, we estimated the proportion of poor peopleand the Gini index for both areas. Besides that, counter-factual microsimulationssimulated the impacts on poverty and inequality levels if schooling levels in bothsector of residence were similar, and also if the disadvantages related to place ofresidence did not exist. We observed that the influence of educational differenceswere much more significant than the ones related to sector of residence.

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How to Cite

Paiva, M. L. de R., & Golgher, A. B. (2009). Poverty and income inequality in Belo Horizonte: an analysis by place of residence. Revista De Economia, 35(2). https://doi.org/10.5380/re.v35i2.17202

Issue

Vol. 35 No. 2 (2009)

Section

Artigos

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