Análise da desigualdade de renda e pobreza no estado do Ceará: uma comparação entre zona urbana e rural

Abstract

This dissertation uses data from PNAD 2004 to study the relationship between income inequality and poverty in the urban and rural areas in Ceará (a Brazilian State). By constructing measures of income inequality and poverty, we verify that, compared to the rural area, inequality is higher in the urban area but poverty rate is lower. We also found that average income in the urban area is statistically greater than average income in the rural area. The income equation shows that this result is robust to the addition of other controls (e.g. sex, age and education). This study suggests that poverty reduction policies should be different in urban and rural areas. In the rural area, where income is lower but more evenly distributed, the appropriate strategy should target income growth rather than inequality reduction. On the other hand, in the urban area, where average income is higher but more concentrated, the correct policy should target inequality reduction.