An evaluation of the structure of the labour market, assistance policies and sectoral productivity on the pro‐poor growth for Brazil from 2004 to 2014: A dynamic panel analysis

Abstract

AbstractThe aim of this article is to evaluate pro‐poor growth based on individual labour market attributions and aggregate variables for Brazilian states: inequality, sectoral economic growth (agriculture, industry and services) and social policies, Programa Bolsa Família and the Benefício de Prestação Continuada. The methodology was a two‐step estimation. The first stage, called the ‘first cross‐sectional stage’, involves estimation by binary choice models that relate poverty levels to the individual attributes and positions in the labour market. In the second stage, poverty was assessed in terms of inequality, economic growth and social policies, aggregated for Brazilian states using a dynamic panel. The results obtained showed that sectoral economic growth and assistance policies have a strong impact on extreme poverty; for the other poverty ranges, the most relevant variables were the reduction of inequality and sectoral economic growth.