TABLE OF CONTENTS -- Acknowledgments -- Abbreviations and Acronyms -- Executive Summary -- PART I: Policy Report -- Introduction -- 1. Why Do Inequalities Matter for Brazil? -- 2. Why is Brazil Such an Unequal Society? -- Inequality in Brazil -- The Causes of Inequality -- Public Policy and Equity -- 3. What Can and Should Public Policy Do About Inequality in Brazil? -- Human Assets and Land: Endowments and Prices -- Public Social Expenditure and Taxation -- 4. Conclusions -- Appendix -- Bibliography -- PART II: Background Papers -- 5. Poverty and Inequality in Brazil: New Estimates from Combined PPV-PNAD Data -- Data -- Methodology -- Implementation -- Poverty and Inequality at the Regional Level -- Poverty and Inequality at Lower Levels of Disaggregation -- Inequality Decompositions -- Conclusions -- References -- 6. Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions across Countries -- Introduction -- Income Distribution in Brazil,Mexico,and the United States -- A General Statement of Statistical Decomposition Analysis -- The Decompositions in Practice: A Specific Model -- The Brazil-United States Comparison -- The Brazil-Mexico Comparison -- Conclusions -- Appendix -- References -- 7. Inequality of Outcomes, Inequality of Opportunities, and Intergenerational Education Mobility in Brazil -- Introduction -- Theoretical Background -- Opportunities and the Distribution of Individual Wages -- Simulating the Effects of the Inequality of Opportunities on Earnings -- The Effects of the Inequality of Opportunities on the Distribution of Household Income -- Summary and Conclusion -- References -- 8. Indirect Taxation Reform: Searching for Dalton-Improvements in Brazil -- Introduction -- Taxation in Brazil: Recent Evolution,Trends and Issues -- What is the Impact of Taxation on the Distribution of Secondary Income?.

Dalton Improving Tax Reforms: Analytical Framework -- Identifying Potential Candidates for Raising and Reducing Taxes -- The Pairs of Tax Changes that Satisfy the Dalton Improvement Condition -- Conclusions -- Appendix -- References -- 9. Schooling Expansion in Demographic Transition: A Transient Opportunity for Inequality Reduction in Brazil -- Introduction -- Demographic Background -- Methodology and Data -- The Evolution of Education Between Cohorts: Monotonically Increasing Mean, Decreasing Inequality and Inverted U-Shaped Mean-V -- The Increasing Stock -to-Cohort Time Lag of Educational Attainment -- Simulations: Permanent and Temporary Acceleration of Educational Attainment -- Conclusions -- Appendix -- Bibliography -- 10. Ex-ante Evaluation of Conditional Cash Transfer Programs:The Case of Bolsa Escola -- Introduction -- Main Features of the Bolsa Escola Program -- A Simple Framework for Modeling and Simulating Bolsa Escola -- Estimation of the Discrete Choice Model -- Descriptive Statistics and Estimation Results -- An ex ante Evaluation of Bolsa Escola and Alternative Program Designs -- Conclusions -- References -- 11. The Dynamics of the Skill-Premium in Brazil: Growing Demand and Insufficient Supply? -- Introduction -- Wage-inequality and Education -- Relative Supply, Relative Demand, and the Skill-premium -- What If? Alternative Paths for Supply and Wage-inequality in the Past -- Summary -- Appendix -- References -- TABLES -- Table 2.1: Effect of Regional Differences on Poverty: Brazil -- Table 2.2: Gini Coefficient for Land Distribution -- Selected Countries -- Table 2.3: Labor Market and Schooling Contribution to Income Inequality in Brazil -- Table 2.4: Accounting for Brazil 's Excess Inequality Relative to the United States: Microsimulations.

Table 2.5: Summary of Results of Analysis of Distributional Incidence of Public Social Expenditure -Northeast and Southeast B -- Table 2.6: School attendance and household characteristics (10-15 years old) -- Table 2.7: Redistributive Impact of Direct and Indirect Taxation by Components: Brazil, Metropolitan Areas, 1999 -- Table 3.1: Equity and Efficiency of Indirect Taxation -- Table 3.2: Tax Rates Change and Welfare Effects for Alternative Pairs of Dalton-improving Indirect Tax Reforms, Brazil -- Table A.1: Social sector priorities according to access gaps of the poor relative to the fourth quintile. Brazil, Urban and R -- Table A.2: Results from analysis of distributional incidence of public social expenditure, Brazil NE and SE 1997 -- Table 5.1: Poverty Measures by Region for Different Data Sets Headcount -- Table 5.2: Inequality Measures by Region for Different Data Sets: General Entropy Class c = 0.5 -- Table 5.3: Poverty Estimates by UF in the Northeast: Headcount -- Table 5.4: Inequality Estimates by UF in the Northeast: General Entropy 0.5 -- Table 5.5: Incidence of Poverty in Northeast Brazil: by State and Location Type -- Table 5.6: Decomposing Inequality: PNAD Income Versus PNAD Consumption: General Entropy Class (0.5) -- Table 6.1: Descriptive Statistics -- Table 6.2: FGT Measures -- Table 6.3: Theil Decompositions of Inequality by Population Characteristics -- Table 6.4: Simulated Poverty and Inequality for Brazilian Earnings in 1999, Using 2000 USA Coefficients -- Table 6.5: Simulated Poverty and Inequality for Brazil in 1999, Using 2000 USA Coefficients -- Table 6.6: Simulated Poverty and Inequality for Brazilian Earnings in 1999, Using 1999 Mexico Coefficients -- Table 6.7: Simulated Poverty and Inequality for Brazil in 1999, Using 1994 Mexico Coefficients.

Table 6A.1: The Multinomial Logit Estimates for Participation Behavior and Occupational Choice: Brazil and the United States -- Table 6A.2: Estimates for the Mincerian Equation: Brazil (1999) and the United States (1994) -- Table 6A.3: The Multinomial Logit Estimates for Demographic Choice: Brazil and the United States -- Table 6A.4: The Multinomial Logit Estimates for Educational Structure: Brazil and the United States -- Table 6A.5: Tobit Model Estimates for Non Labour Incomes: Brazil and the United States -- Table 6A.6: The Multinomial Logit Estimates for Participation Behavior and Occupational Choice: Brazil and Mexico -- Table 6A.7: Estimates for the Mincerian Equation: Brazil (1999) and Mexico (1994) -- Table 6A.8: The Multinomial Logit Estimates for Demographic Choice: Brazil and the Mexico -- Table 6A.9: The Multinomial Logit Estimates for Educational Structure: Brazil and the Mexico -- Table 7.1: Descriptive Statistics -- Table 7.2a: Wage Equations by Cohort Using OLS, for Men -- Table 7.2b: Wage Equations by Cohort Using Heckman Correction (2SLS), for Women -- Table 7.3: Years of Schooling, by Parental Education Levels -- Table 7.4a: Educational Mobility OLS Regressions by Cohort:Men 's Years of Schooling -- Table 7.4b: Educational Mobility OLS Regressions by Cohort: Women's Years of Schooling -- Table 7.5a: Intergenerational Educational Mobility: Cohort 1936-1940 -- Table 7.5b: Intergenerational Educational Mobility: Cohort 1946-1950 -- Table 7.5c: Intergenerational Educational Mobility: Cohort 1956-1960 -- Table 7.5d: Intergenerational Educational Mobility: Cohort 1966-1970 -- Table 7.6a: Contribution of Inequality of Opportunity to Inequality of Family Per Capita Income: 5-year Cohort. Schooling and -- Table 7.6b: Contribution of Inequality of Opportunity to Inequality of Family Per Capita Income: 5-year Cohort. Schooling and.

Table 7.6c: Contribution of Inequality of Opportunity to Inequality of Family Per Capita Income: 5-year Cohort. Schooling and -- Table 8.1: Tax Burden in Brazil, 1996-2000 as Percent of GDP and of Total Revenues (TR), by its Main Taxes and Contributions -- Table 8.2: Tax Burden in Brazil, 1996-2000 as Percentage of Total Revenues, by Levels of Government -- Table 8.3: Indirect Taxation in Brazil, Rates and Revenues, 1999 -- Table 8.4: Redistributive Impact of Direct and Indirect Taxation by Components Brazil, Metropolitan Areas, 1999 -- Table 8.5: Decomposing the Distributive Effect of Indirect Taxation by Type of Goods. Brazil Metropolitan Areas, 1999 -- Table 8.6: Equity and Efficiency of Indirect Taxation -- Table 8.7: Tax Rates Change and Welfare Effects for Alternative Pairs of Dalton Improving Indirect Tax Reforms, Brazil -- Table 8.8: Welfare Ranking Between the DALTON Improving Tax Reforms -- Table 8A.1: State Level VAT Incidence (Nominal and Effective) on Food Products of State Basic Food Baskets for All Brazilian -- Table 8A.2a: Welfare Ranking of Alternative DALTON Improving Indirect Tax Reforms (Pair of Taxes) -- Table 8A.2b: Welfare Ranking of Alternative DALTON Improving Indirect Tax Reforms (Pair of Taxes) -- Table 10.1: School Enrollment and Occupation of Children by Age (10-15 Years Old) -- Table 10.2: Sample Means. Characteristics of Children and the Household they Belong to (10-15 Years Old Only) -- Table 10.3: Log Earnings Regression (10-15 Years Old Children Reporting Earnings) -- Table 10.4: Multinomial Logit Coefficients -- Table 10.4a: Multinomial Logit Coefficients -- Table 10.4b: Multinomial Logit Coefficients -- Table 10.5: Simulated Effect of Bolsa Escola on Schooling and Working Status (All Children 10-15 Years Old).

Table 10.6: Simulated Effect on Schooling and Working Status of Alternative Specifications of Conditional Cash Transfer Progr.