The Trends and the Reasons Behind Substantially Reduced Inequality: The Case of Brazil

Abstract

This article combines individual data from household surveys in the Latin American countries to obtain a regional income and analyse its distribution and recent changes. It concentrates upon whether distributive changes in the countries over the past decade have improved income distribution between individuals or widened gaps. The region’s indicators of global inequality declined considerably during 1997-2014. This decline in global inequality is explained essentially by the reduction of inequality within Latin American countries, especially in Brazil. The incomes of the inhabitants of Latin America are now more equal in relative terms than a decade ago, although differences in the countries’ average incomes have increased.