Camila Matins-Bekat & Kishore G. Kulkarni Victoria Han & Vesselina Pentcheva

 Is all inequality equal in its effect?  Why is economic inequality higher in countries that grow fast?  Is economic growth a culprit?

 “As a country develops, income inequality initially increases, and only after some time, it declines.”

 Social High inequality deteriorates stocks of human capital  Political The poor are often excluded in the political arena  Economic Poverty trap

 “Income distribution in Brazil is among one of the most unequal in the world.”  High volume of social mobility “Inferior low”  “superior low”  “inferior medium”  Skin color counts for 12% of income inequality in Brazil

 The debt crisis was the result of careless borrowing and irresponsible spending habits.  Hyperinflation in the 1980s Inflation rates were over 1000%  Increase of income inequality

 : policies and reforms enacted by President Cardoso  New currency, the Real, 1994 Pegged 1:1 with the U.S. dollar  Fiscal balance  Plano Real

 Brazil fits the inverted U path  Drivers of the decline to inequality  Successful governmental policies Bolsa Escola Bolsa Familia