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An exploration into the distribution of income in Brazil, 1839-1939

Luis Bértola, Cecilia Castelnovo, Eustáquio J. Reis, Henry Willebald

Bértola, Luis, Cecilia Castelnovo, Eustaquio J. Reis, and Henry Willebald. "An Exploration into the Distribution of Income in Brazil, 1839-1939." Paper presented at the XIV International Economic History Congress, Helsinki-Finland, 21 to 25 August 2006.

Abstract: Based on Census data on the occupational structure of the population in 1872 and 1920, different sources are used in order to assign income to different occupational groups and construct two benchmarks. Using available time series for income of a limited amount of occupational groups, an attempt is done to estimate the evolution of income inequality from 1839-1898. An alternative scenario is constructed giving place to structural change between 1872 and 1939. Our benchmark estimates show Gini-coefficients which we consider lower than what could be expected. In spite of it, inequality in Brazil was by 1870 rather high. Nevertheless, the trend between 1839 and 1898 was one of declining inequality. For the second half of this century, for which we have acceptable GDP estimates, decreasing inequality goes hand in hand with economic retardation. This economic retardation affected mainly the income of the privileged sectors of a highly un-skilled society.