Reducing Poverty and Inequality during the Coronavirus Outbreak: The Emergency Aid Transfers in Brazil

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dc.contributor.authorNAERCIO AQUINO MENEZES FILHO
dc.contributor.authorKomatsu, Bruno Kawaoka
dc.contributor.authorRosa, João Pedro
dc.coverage.cidadeSão Paulopt_BR
dc.coverage.paisBrasilpt_BR
dc.creatorKomatsu, Bruno Kawaoka
dc.creatorRosa, João Pedro
dc.date.accessioned2023-12-13T19:17:20Z
dc.date.available2023-12-13T19:17:20Z
dc.date.issued2021
dc.description.notesProdução vinculada a Cátedra Ruth Cardoso. Formato em Policy Paperpt_BR
dc.description.otherWhile developing countries have been dramatically affected by the COVID-19 pandemic, most of them have set out social policies to counter its major negative impacts. Brazil implemented one of largest emergency cash transfer programs in Latin America, the Emergency Aid Transfer (EAT). In this paper we use new household panel data to compare the evolution of poverty and inequality indicators before and during the Pandemic with and without the EAT, perform inequality decompositions and characterize the dynamics of the Brazilian labor market, examining the demographic groups most affected by social distancing. We find that poverty rate declined from 12% in 2019 to 8% during the pandemic and extreme poverty dropped from 3% to about 1%. The poverty difference between blacks and whites also dropped significantly. The Gini index was reduced from 0.53 to 0.47, remaining below 0.50 for the first time in Brazilian history. Descriptive analysis suggests that poverty and inequality would have been much higher during the pandemic without the EAT. An inequality decomposition also indicates a major role for the EAT in explaining the decline in inequality between 2019 and 2020. As for the labor market, regression analysis comparing transitions between 2018 and 2019 with those between 2019 and 2020 indicate that women, the younger and older workers were particularly affected by the pandemic, displaying higher transition rates from work to inactivity. The sectors with the highest increase in the probability of job loss were accommodation and food services. The end of the EAT in December 2020 coupled with the Covid-19 second wave should throw millions of Brazilians back in poverty.pt_BR
dc.format.extent49 p.pt_BR
dc.format.mediumDigitalpt_BR
dc.identifier.urihttps://repositorio.insper.edu.br/handle/11224/6172
dc.language.isoInglêspt_BR
dc.relation.ispartofseriesPolicy Paperpt_BR
dc.rights.licenseTODOS OS DOCUMENTOS DESTA COLEÇÃO PODEM SER ACESSADOS, MANTENDO-SE OS DIREITOS DOS AUTORES PELA CITAÇÃO DA ORIGEMpt_BR
dc.subject.keywordsCash transferspt_BR
dc.subject.keywordsCOVID-19pt_BR
dc.subject.keywordspovertypt_BR
dc.subject.keywordsinequalitypt_BR
dc.subject.keywordslabor marketpt_BR
dc.titleReducing Poverty and Inequality during the Coronavirus Outbreak: The Emergency Aid Transfers in Brazilpt_BR
dc.typePolicy Paper
dspace.entity.typePublication
local.subject.cnpqCiências Sociais Aplicadaspt_BR
local.typePolicy Paperpt_BR
relation.isAuthorOfPublicationf6aa41b4-c778-4302-9674-af120c85cc97
relation.isAuthorOfPublication.latestForDiscoveryf6aa41b4-c778-4302-9674-af120c85cc97

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