Changing Family Structure and Impacts on Income Distribution: The Swift Demographic Transition in Brazil

Alexandre Gori Maia, Universidade Estadual de Campinas (UNICAMP)
Camila Sakamoto, Universidade Estadual de Campinas (UNICAMP)

This paper analyzes the impact of changing family structure on the income distribution in Brazil between 1981 and 2011. Specifically, the paper evaluates how changes in the composition of the types of families within the richest and poorest family groups contributed to increase per capita income, to reduce inequality and poverty. Additionally, the paper provides a comparison between rural and urban areas in order to understand how these dynamics had different impacts on more developed (urban) and less developed (rural) areas. Results highlight that changes observed in the family structure were more pronounced among the richest families, contributing to increase the income of the richest families and the income inequality between richest and poorest families, as well as between urban and rural areas. The overall impact on poverty reduction was insignificant. The paper then discusses the relation between the dynamics of the family structure and the socioeconomic development in Brazil.