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4h ago

Ipea Study: Brazilian Incomes Up Nearly 70% Since 1995 as Poverty and Inequality Hit Series Lows

An Ipea study credits the recent inequality decline chiefly to labor-market gains, with transfers also playing a major role.

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Overview

  • Real mean household per-capita income rose from R$1,191 in 1995 to R$2,015 in 2024, equal to an average gain of about 1.8% per year in 2024 prices.
  • Progress was concentrated in two spurts, with roughly 80% of the 1995–2024 income increase occurring during 2003–2014 and a new push in 2021–2024.
  • Brazil’s Gini index fell 3.9 percentage points between 2021 and 2024, with labor income explaining 1.9 points, transfers 1.7 points, social security −0.3 point, and other income 0.1 point.
  • The share of people classified as poor dropped from 61.2% to 21.8%, and extreme poverty fell from 25.2% to 4.8%, based on thresholds near R$8.30 per day and up to R$3 per day, respectively.
  • Income concentration measured by the Palma ratio declined from 6.4 to 3.3, with 2024 marking the best readings for income, poverty, and inequality in the household-survey series.