RELATION BETWEEN INCOME GROWTH AND POVERTY IN BRAZILIAN STATES IN 2016 AND 2019

Abstract

This paper aims to analyze the relation between income growth and poverty in Brazilian states in the years 2016 and 2019. To achieve the purpose of the paper, the pro-poor growth index of Ravallion and Chen (2003), Kakwani and Pernia (2000) and poverty equivalent growth rate (PEGR), were calculated. The first index is based on calculating the income growth rates of each percentile of the population. The index by Kakwani and Pernia (2000) is the result of the ratio between the change registered in poverty and a variation verified in inequality. Finally, the PEGR is intended to identify how average income growth influences poverty reduction. To calculate the indexes, data from the National research by Continuous Household Sample (PNADC) for the years of 2016 and 2019, was used. The results showed that, in most federative units in the country, income growth did not benefit poor people during the period studied. It was noticed that pratically all cases, the non-poor were benefited proportionately more from income growth than the poor.