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This chapter provides a detailed analysis of the recent evolution (1993–2007) of Brazilian income inequality. Particularly, we assess the contribution of different income sources to inequality, using three different decomposition techniques: Shorrocks (1982), Lerman and Yitzhaki (1985), and Gini decomposition. We exploit a recent dataset (PNAD, 2004) that allows the identification of different governmental transfer programs (Bolsa-Família, PETI, and BPC) and their impacts into inequality. While informal labor income and self-employment income reduces inequality in almost every measure, the opposite is true for public sector wages. Private formal labor income is becoming less important in explaining Brazilian inequality over time, but its behavior is still important, as it represents more than 40% of the total income. We find that social transfer programs have a limited, but positive impact on equality. On the other hand, dynamics of pensions attenuate the recent path of decreasing inequality in Brazil.

Volume 18 of Research on Economic Inequality contains selected papers from the Society for the Study of Economic Inequality's Third Annual Meeting (July, 2009) in Buenos Aires, Argentina. The volume collects eleven papers, five of which focus on inequality and poverty in Latin America. The Latin American papers address basic needs and poverty, multidimensional poverty, educational mobility, poverty dynamics, and the role of cash transfer programs in addressing inequality. The second half of Volume 18 collects other papers by ECINEQ members. The topics covered include taxation and inequality, evaluating poverty orderings, testing for mobility dominance, measuring relative deprivation, estimation of the costs of maintaining a child, and evaluating nutritional inequality.