By FERNANDO NOGUEIRA DA COSTA*
Women, black or brown people, young people and residents of rural areas face greater difficulties in relation to work, income, education and health
A Summary of Social Indicators for 2024, published by the IBGE, presents a comprehensive analysis of the living conditions of the Brazilian population, focusing on social inequalities, although they are insurmountable in capitalism with the rule of law. Income transfer programs, such as Bolsa Família, play an important role in reducing poverty – but not income and wealth inequality.
Social inequalities are evident in all areas analyzed, but women, black or brown people, young people and residents of rural areas face greater difficulties in relation to work, income, education and health.
A Summary of Social Indicators for 2024 analyzes income distribution in Brazil between 2012 and 2023. It highlights the influence of labor market dynamics and income transfer programs on income, inequality and monetary poverty.
The period analyzed was marked by economic fluctuations, including the 2015-2016 crisis and the COVID-19 pandemic in 2020. These crises affected the labor market, with a drop in aggregate income and the destruction of jobs. From 2022 onwards, there was a recovery in the labor market, with GDP growth and a reduction in unemployment and underutilization rates.
In 2023, the average real usual income of the employed population increased by 7,1%, indicating a recovery in the labor market. All economic activities showed growth in average income, with emphasis on Accommodation and Food, Other Services and Trade and Repair.
However, the structure of the Brazilian labor market is uneven. Average income varies greatly across different sectors, with Domestic Services having the lowest income and Information, Financial Activities and Other Professional Activities, along with Public Administration, Education, Health and Social Services, recording the highest values.
The black and brown population receives lower average incomes than the white population. This disparity has persisted over the years, regardless of the level of education or the number of hours worked. In 2023, the white working population earned, on average, 69,9% more than the black and brown population.
The expansion of income transfer programs, such as Bolsa Família, in the post-pandemic period resulted in an increase in the share of social benefits in the composition of household income, especially among those with lower incomes. In 2023, benefits from social programs represented 57,1% of the income of households with a per capita household income of up to ¼ of the minimum wage, in contrast to 23,5% in 2012.
Analysis of monetary poverty, using the World Bank poverty line of US$6,85 per day (2017 PPP), reveals that more than 58,9 million people in Brazil were living in poverty in 2023. Extreme poverty, measured by the US$2,15 per day line, affected 9,5 million people. Poverty and extreme poverty are more prevalent in rural areas and among certain population groups, such as children and people with lower levels of education.
The reduction in poverty and extreme poverty in 2023 was driven by the increase in Bolsa Família benefit amounts and the dynamism of the labor market. Without income transfer programs, extreme poverty would have increased in 2023.
However, income inequality – and, even worse, wealth inequality – persists as an insurmountable structural problem. It is evidenced by the disparity in average incomes between different population groups and sectors of the economy.
A Summary of Social Indicators for 2024 examines the relationship between housing conditions and monetary poverty in Brazil. It demonstrates how aspects such as the physical structure of homes, security of tenure and access to basic services impact family wealth and contribute to social stratification.
Although the majority (70%) of the Brazilian population lives in their own homes, security of tenure varies greatly among different socioeconomic groups. Informal property ownership is more common among the population living in poverty, with 19,6% of people with incomes below the extreme poverty line living in undocumented homes, compared to 9% of the population as a whole. This informality limits access to credit and investments, impacting families’ ability to accumulate wealth.
Excessive rent burden, defined as monthly rent equal to or greater than 30% of household income, also disproportionately affects the population in poverty. In 2023, 11,2% of the population in extreme poverty faced this situation. It compromised disposable income for other basic needs and investments and perpetuated the cycle of poverty.
The precarious conditions of the physical structure of homes also impact the quality of life and opportunities of families. The proportion of people living in homes with external walls built with non-durable materials is higher among the population in poverty, reaching 2,6% in the population in extreme poverty.
Furthermore, inadequate housing, such as a high number of residents per bedroom, is more prevalent among the poorest. It impacts the privacy, comfort and development of families.
The lack of access to basic services, such as sanitation, treated water and garbage collection, worsens the living conditions of the population living in poverty and contributes to social stratification. In 2023, the proportion of people living in households with sewage systems via sewage collection or rainwater drainage was much lower among the population living in extreme poverty (48,4%) compared to the general population (67,9%). The lack of basic sanitation increases vulnerability to diseases, affecting the health, productivity and quality of life of families.
The presence of durable goods in households, such as washing machines and internet access, also reflects socioeconomic disparities and opportunities for different groups. For example, 51,4% of people lived in homes with cars, but among those with more than 80% of household income per capita, this was 82,8%, and among those with up to 20%, this was 21,7%. The population living in poverty has less access to these goods, which limits opportunities for education, work and leisure.
SIS 2024 examines the distribution of the Brazilian population by education level. This inequality is related to income levels, highlighting the strong correlation between education and income in Brazil.
The level of education achieved by the adult population in Brazil is a reflection of the investment in education made in previous decades. In 2023, 45,6% of people aged 25 or over had not completed compulsory basic education (high school), with 33,1% not having completed elementary school and 12,5% not having completed high school. This low level of education directly impacts the employment and income opportunities of this segment of the population.
The study highlights the disparity between Brazil and the countries of the Organization for Economic Cooperation and Development (OECD) regarding the completion of Basic Education. In 2023, the proportion of Brazilians aged 25 to 64 without a complete secondary education (40,1%) was more than double the average for OECD countries (19,8%) in 2022. This difference puts Brazil at a disadvantage in terms of human capital and economic development.
Education is a determining factor for entering the job market and obtaining better income. The research analyzes the population's employment level by level of education. The higher the level of education, the greater the probability of being employed and receiving better salaries.
In 2023, the employment rate of women with a higher education degree was three times higher than that of women with no education or incomplete primary education. This difference highlights the importance of education for women's economic autonomy, especially in a context of gender inequality in the labor market.
The research examines the average income of the employed population by level of education, confirming the positive relationship between education and income. In 2023, the employed white population with a higher education degree received, on average, R$40,24 per hour worked, while the black or brown population with the same level of education received R$28,11. This disparity highlights the persistence of racial inequality in the Brazilian labor market, even among those with a higher level of education.
A Summary of Social Indicators for 2024 analyzes regional and social inequalities in schooling. Illiteracy rates vary greatly across regions of the country, with the Northeast region having the highest rate (11,2% in 2023), double the national average. This regional disparity reflects historical inequalities in access to education and opportunities for socioeconomic development.
The research highlights the strong correlation between education and income. Higher education is associated with greater chances of employment, better salaries and a better quality of life.
*Fernando Nogueira da Costa He is a full professor at the Institute of Economics at Unicamp. Author, among other books, of Brazil of banks (EDUSP). [https://amzn.to/4dvKtBb]
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