Please use this identifier to cite or link to this item: https://repositorio.insper.edu.br/handle/11224/6172
Type: Relatório de pesquisa
Title: Reducing Poverty and Inequality during the Coronavirus Outbreak: The Emergency Aid Transfers in Brazil
Author: Menezes Filho, Naercio Aquino
Komatsu, Bruno Kawaoka
Rosa, João Pedro
Publication Date: 2021
Abstract: While 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.
Keywords (english terms): Cash transfers
COVID-19
poverty
inequality
labor market
Language: Inglês
CNPq Area: Ciências Sociais Aplicadas
Copyright: TODOS OS DOCUMENTOS DESTA COLEÇÃO PODEM SER ACESSADOS, MANTENDO-SE OS DIREITOS DOS AUTORES PELA CITAÇÃO DA ORIGEM
Notes: Produção vinculada a Cátedra Ruth Cardoso. Formato em Policy Paper
Appears in Collections:Coleção de Relatório de Pesquisa

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