Desigualdade interpessoal de renda:implicações sobre o crescimento econômico dos municípios brasileiros

Abstract

This paper's goal is to assess the adverse effect that interpersonal income inequality had on the economic development of Brazilian cities. Because of the endogeneity between income inequality and econo-mic growth, possibly influenced by the positive bias of technology on wages of more skilled workers, it propo-ses the use of age structures as instruments for inequali-ty and schooling in the relevant cities. It was possible to observe a transitory effect of inequality on growth: in-come inequality has negligible effects when the engine of economic growth is the industrial expansion, howe-ver, adverse effects when economic growth is sustained by the expansion of the services sector.