Poverty determinants in Brazilian Metropolitan Areas from 1995 to 2009

Abstract:

The objective of this paper is to analyze the impact of growth and inequality on poverty in the metropolitan areas of Brazil. For both factors we use Shapley's temporal and spatial decomposition, through a methodology proposed by Shorrocks (1999). We analyzed data obtained from PNAD from 1995 to 2009. The measurement of poverty is treated with the family of Foster-Greer-Thorbecke (FGT) indices, using one poverty line. The results of the annual analysis showed little change in poverty levels in the period 1995-2003. The following period, 2004-2009, shows a declining trend in poverty indicators for all metropolitan areas and the growth component is the main determinant of this trend. With regards to the spatial analysis of decomposition of poverty, there are changes in the spatial pattern, with decreasing levels of poverty differences between the country's metropolitan areas.

Keywords:
poverty; inequality; growth