Demographic dynamics of poverty and income inequality: the case of Brazil

Abstract

There is a common belief that higher reproduction rates among the poor will increase average poverty levels, drive inequality up, prevent economic development and reduce upward mobility. To test this hypothesis we used 1980, 1991 and 2000 Brazilian Census data. We first present rates of demographic growth among subpopulations with different levels of income (poor, middle and rich classes) and then 1) evaluate the impact of differential demographic rates on the size, composition and growth of income classes and on the distribution of income through population projections, and 2) conduct stable population analysis, demonstrating the long-term implications of maintaining or changing current demographic patterns to the composition of poverty and inequality.