The effects of multidimensional well-being growth on poverty and inequality in Brazil over the periods of 2004-2008 and 2016-2019

NEVES, OTAVIO JUNIO FARIA; SILVA, ANA MÁRCIA RODRIGUES DA

doi:10.1590/0101-31572023-3428

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Articles • Brazil. J. Polit. Econ. 43 (2) • Apr-Jun 2023 • https://doi.org/10.1590/0101-31572023-3428 linkcopy

The effects of multidimensional well-being growth on poverty and inequality in Brazil over the periods of 2004-2008 and 2016-2019^*

Efeitos do crescimento do bem-estar multidimensional na pobreza e desigualdade do Brasil no período de 2004-2008 e 2016-2019

Authorship SCIMAGO INSTITUTIONS RANKINGS

This study aims to analyze the effects of multidimensional well-being growth on poverty and inequality in Brazil over the periods of 2004-2008 and 2016-2019. Empirically, the methodologies of Kakwani and Pernia (2000), Kakwani, Khandker, and Son (2004), and Shapley’s decomposition are used. The results have demonstrated that a decrease in multidimensional poverty happened between 2004 and 2008, and an increase happened between 2016 and -2019. The growth in multidimensional well-being in the second period has been anti-poor. With the decomposition, it was found that while multidimensional well-being growth contributed to poverty reduction between 2004 and2008, between 2016 and 2019 the concentration contributed to an increase in poverty.

KEYWORDS:
Well-being; multidimensional poverty; inequality

Authorship

person OTAVIO JUNIO FARIA NEVES

school Doutorando em Demografia na Universidade Estadual de Campinas (Unicamp), Campinas-SP, Brasil. Mestre em Economia pela Universidade Federal de Alfenas (UNIFAL), Varginha-MG, Brasil. E-mail: otavionevescg@hotmail.com.Universidade Estadual de Campinas (Unicamp)BrasilCampinas, SP, Brasil Doutorando em Demografia na Universidade Estadual de Campinas (Unicamp), Campinas-SP, Brasil. Mestre em Economia pela Universidade Federal de Alfenas (UNIFAL), Varginha-MG, Brasil. E-mail: otavionevescg@hotmail.com.

0000-0001-7248-5439

person ANA MÁRCIA RODRIGUES DA SILVA

school Professora do Programa de Pós-Graduação em Economia da Universidade Federal de Alfenas (UNIFAL), Varginha - MG, Brasil. E-mail: ana.rodrigues@unifal-mg.edu.br.Universidade Federal de Alfenas (UNIFAL)BrasilVarginha, MG, Brasil Professora do Programa de Pós-Graduação em Economia da Universidade Federal de Alfenas (UNIFAL), Varginha - MG, Brasil. E-mail: ana.rodrigues@unifal-mg.edu.br.

0000-0003-0892-4841

SCIMAGO INSTITUTIONS RANKINGS

Doutorando em Demografia na Universidade Estadual de Campinas (Unicamp), Campinas-SP, Brasil. Mestre em Economia pela Universidade Federal de Alfenas (UNIFAL), Varginha-MG, Brasil. E-mail: otavionevescg@hotmail.com.Universidade Estadual de Campinas (Unicamp)BrasilCampinas, SP, Brasil Doutorando em Demografia na Universidade Estadual de Campinas (Unicamp), Campinas-SP, Brasil. Mestre em Economia pela Universidade Federal de Alfenas (UNIFAL), Varginha-MG, Brasil. E-mail: otavionevescg@hotmail.com.

Professora do Programa de Pós-Graduação em Economia da Universidade Federal de Alfenas (UNIFAL), Varginha - MG, Brasil. E-mail: ana.rodrigues@unifal-mg.edu.br.Universidade Federal de Alfenas (UNIFAL)BrasilVarginha, MG, Brasil Professora do Programa de Pós-Graduação em Economia da Universidade Federal de Alfenas (UNIFAL), Varginha - MG, Brasil. E-mail: ana.rodrigues@unifal-mg.edu.br.

Tables | Formulas

Tables (5)
Formulas (10)

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Table 1: Selected dimensions, cut-off levels, and indicator weights^*

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Table 2: Pro-poor growth indexes based on multidimensional well-being in Brazil in 2004-2008

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Table 3: Pro-poor growth indexes based on multidimensional well-being in Brazil in 2016-2019

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Table 4: Decomposition of the multidimensional poverty variation between well-being growth and redistribution in the period of 2004-2008

Thumbnail

Table 5: Decomposition of the change in multidimensional poverty between well-being growth and redistribution over the period of 2016-2019

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(20)

(21)

table_chartTable 1: Selected dimensions, cut-off levels, and indicator weights^*

Dimension	Indicators with the cut-off level (z)	Weight
Economic Vulnerability	Income below the poverty line	1/3
	More dependents than non-dependents	1/3
	Lack of a paid occupation	1/3
Housing Conditions	Not your own house	1/5
	More than three people living in one room	1/5
	Lack of electricity	1/5
	Walls made of substandard material	1/5
	Roofing made of substandard material	1/5
Sanitary Conditions	Lack of a toilet	1/4
	Lack of sewage system or septic tank	1/4
	Inadequate waste disposal	1/4
	Inadequate water supply	1/4
Lack of Goods	Lack of a landline or cell phone	1/5
	Lack of a TV set	1/5
	Lack of a refrigerator	1/5
	Lack of a washing machine	1/5
	Lack of a computer	1/5
Educational Characteristics	Presence of illiterate adults	1/3
	Presence of adults lacking complete elementary education	1/3
	Presence of children aged 6 to 15 out of school	1/3
Occupational Conditions	Lack of women’s participation in employment	1/4
	Inadequate occupation	1/4
	Lack of someone employed with a signed contract	1/4
	Lack of someone employed earning an income higher than minimum wage	1/4

For the calculation of Income below the poverty line the World Bank poverty line of US$ 5.50 was used, converted into Brazilian Reais on the basis of purchasing power parity. It was considered as Inadequate water supply when water was not supplied from a general distribution network in urban areas, or not from a general distribution network, or from a well or spring in rural areas. As Walls made from substandard material materials other than brickwork were considered, and as Roofing made of substandard material different tile and concrete slab materials were considered. Since there is no direct waste collection in most rural areas, the possibility of waste being burned or buried on the property was also considered when individuals were located in rural locations, in the variable Inadequate waste disposal. By Inadequate occupation, underemployment was understood to be due to insufficient hours or insufficient wages.
Source: Authors’own compilation based on the PNAD and PNADC data covering the years 2004-2008, 2016-2019.

table_chartTable 2: Pro-poor growth indexes based on multidimensional well-being in Brazil in 2004-2008

Pro-poor growth indexes	Estimate	se*	lb*	ub*
Well-being growth rate (g)	0.1210	0.0016	0.1178	0.1242
Kakwani and Pernia’s Index (2000)	0.8570	0.0117	0.8341	0.8799
PEGR	0.1037	0.0020	0.0997	0.1077
PEGR - g	-0.0173	0.0014	-0.0020	-0.014

*se = standard error; lb= lower-bounded (95%); ub = upper-bounded (95%).
Source: Authors’own compilation based on the PNAD and PNADC data covering the years 2004-2008.

table_chartTable 3: Pro-poor growth indexes based on multidimensional well-being in Brazil in 2016-2019

Pro-poor growth indexes	Estimate	se*	lb*	ub*
Well-being growth rate (g)	0.0117	0.002	-0.055	-0.047
Kakwani and Pernia’s Index (2000)	-1.3092	0.069	1.079	1.348
PEGR	-0.0153	0.005	-0.072	-0.051
PEGR - g	-0.0270	0.004	-0.018	-0.003

^*
se = standard error; lb= lower-bounded (95%); ub = upper-bounded (95%).
Source: Authors’own compilation based on the PNAD and PNADC data covering the years 2016-2019.

table_chartTable 4: Decomposition of the multidimensional poverty variation between well-being growth and redistribution in the period of 2004-2008

Groups	Shapley’s decomposition
Groups	$C_{G}^{S}$	$C_{R}^{S}$	∆P
Region
North	-0.1286	0.0122	-0.1164
Northeast	-0.1204	0.0320	-0.0884
Southeast	-0.1124	0.0063	-0.1061
South	-0.1144	0.0100	-0.1044
Midwest	-0.1250	0.0053	-0.1197
Gender
Male	-0.1092	0.0082	-0.101
Female	-0.1204	0.0206	-0.0998
Ethnicity
Caucasian	-0.1130	0.0154	-0.0976
African	-0.1386	0.0177	-0.1209
Asian	-0.0150	-0.0239	-0.0389
Mixed	-0.1397	0.0278	-0.1119
Native	-0.0842	0.0026	-0.0816
Census tract
Urban	-0.1165	0.0091	-0.1074
Rural	-0.1049	0.0370	-0.0679
Economic activity sectors
Agriculture	-0.1494	0.0564	-0.093
Other industrial activities	-0.0462	-0.0016	-0.0478
Manufacturing	-0.0600	0.0029	-0.0571
Construction	-0.1254	0.0223	-0.1031
Trade and repair	-0.0766	-0.0070	-0.0836
Accommodation and food	-0.1011	0.0166	-0.0845
Transportation	-0.0614	-0.0047	-0.0661
Public administration	-0.0383	-0.0106	-0.0489
Education and health	-0.0287	-0.0115	-0.0402
Domestic services	-0.1257	0.0369	-0.0888
Other community services	-0.0807	-0.0109	-0.0916
Other activities	-0.0312	-0.0011	-0.0323
Poorly defined activities	-0.0738	-0.0388	-0.1126

Source: Authors’own compilation based on the PNAD and PNADC data covering the years 2004-2008.

table_chartTable 5: Decomposition of the change in multidimensional poverty between well-being growth and redistribution over the period of 2016-2019

Groups	Shapley’s decomposition
Groups	$C_{G}^{S}$	$C_{R}^{S}$	∆ P
Region
North	0.0499	0.0350	0.0849
Northeast	0.0308	0.0332	0.0640
Southeast	-0.0348	0.0531	0.0183
South	-0.0122	0.0391	0.0269
Midwest	-0.0083	0.0472	0.0389
Gender
Male	0.0000	0.0427	0.0427
Female	-0.0229	0.0583	0.0354
Ethnicity
Caucasian	-0.0507	0.0756	0.0249
African	0.0249	0.0207	0.0456
Asian	-0.0748	0.1251	0.0503
Mixed	0.0267	0.0204	0.0471
Native	0.0337	0.0289	0.0626
Census tract
Urban	-0.0154	0.0530	0.0376
Rural	0.0450	0.0052	0.0502
Economic activity sectors
Agriculture	0.0624	-0.0133	0.0491
Other industrial activities	0.0000	0.0267	0.0267
Manufacturing	0.0450	0.0060	0.0510
Construction	0.0136	0.0156	0.0292
Trade and repair	0.0281	-0.0034	0.0247
Accommodation and food	0.0466	0.0065	0.0531
Transportation	-0.0225	0.0355	0.0130
Public administration	-0.0359	0.0433	0.0074
Education and health	-0.0395	0.0432	0.0037
Domestic services	-0.0045	0.0532	0.0487
Other community services	0.0735	-0.0163	0.0572
Other activities	0.0009	0.0844	0.0853

Source: Authors’own compilation based on the PNAD and PNADC data covering the years 2016-2019.

\frac{\partial P (z, x)}{\partial x} < 0 \frac{\partial^{2} P (z, x)}{\partial x^{2}} > 0

(8)

θ = \int_{0}^{z} P (z, x) f (x) d x

(9)

\frac{d θ}{θ} = \frac{1}{θ} \int_{0}^{z} \frac{\partial P}{\partial x} d (x) f (x) d x

(10)

d L_{n} (θ) = \frac{1}{θ} \int_{0}^{H} \frac{\partial P}{\partial x} x (p) g (p) d p

d L n (x (p)) = d L n (μ) + d L n (L' (p))

(13)

d L n (θ) = y η + \frac{1}{θ} \int_{0}^{H} \frac{\partial P}{\partial x} x (p) d L n (L' (p)) d p

(14)

η = \frac{1}{θ} \int_{0}^{H} \frac{\partial P}{\partial x} x (p) d p

(19)

C_{G}^{S} = \frac{1}{2} [P (μ_{2}, L_{1}) - P (μ_{1} L_{1})] + \frac{1}{2} [P (μ_{2}, L_{2}) - P (μ_{1} L_{2})]

(20)

C_{R}^{S} = \frac{1}{2} [P (μ_{1}, L_{2}) - P (μ_{1} L_{1})] + \frac{1}{2} [P (μ_{2}, L_{2}) - P (μ_{2} L_{1})]

(21)

∆ P = C_{G}^{S} + C_{R}^{S}

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[TFN1] For the calculation of Income below the poverty line the World Bank poverty line of US$ 5.50 was used, converted into Brazilian Reais on the basis of purchasing power parity. It was considered as Inadequate water supply when water was not supplied from a general distribution network in urban areas, or not from a general distribution network, or from a well or spring in rural areas. As Walls made from substandard material materials other than brickwork were considered, and as Roofing made of substandard material different tile and concrete slab materials were considered. Since there is no direct waste collection in most rural areas, the possibility of waste being burned or buried on the property was also considered when individuals were located in rural locations, in the variable Inadequate waste disposal. By Inadequate occupation, underemployment was understood to be due to insufficient hours or insufficient wages.

[TFN2] Source: Authors’own compilation based on the PNAD and PNADC data covering the years 2004-2008, 2016-2019.

The effects of multidimensional well-being growth on poverty and inequality in Brazil over the periods of 2004-2008 and 2016-2019*

Efeitos do crescimento do bem-estar multidimensional na pobreza e desigualdade do Brasil no período de 2004-2008 e 2016-2019

The effects of multidimensional well-being growth on poverty and inequality in Brazil over the periods of 2004-2008 and 2016-2019^*