THE CONTRIBUTION OF LABOR INCOME AND OF PROGRAMS OF INCOME TRANSFERS FOR THE FALL OF INEQUALITY IN URBAN AND RURAL AREAS OF BRAZIL: 2004-2008

Abstract

This article aims to evaluate the effect of policies on income transfers and the labor market in Brazilian inequality in urban and rural areas, between the years 2004 to 2008. For this analysis, the research procedures used were the research literature and

documents, and the database used was the Pesquisa Nacional por Amostra de Domicílios (PNAD) from 2004 to 2008, and the technique of decomposition of the Gini coefficient made by Ferreira (2003) and Ferreira; Souza (2008, 2010).  With these results, there are differences and similarities in the behavior of the formative elements of personal income in urban and rural areas. The labor income has contributed to reducing inequality in urban areas, but contributed to the concentration of income in rural areas, incomes derived from retirement and pension income contributed to focus on two areas of research, as well as conditional cash transfers have contributed to reducing inequality in both rural and urban sectors in Brazil.