Back to the Country of the Future

42
Back to the Country of the Future: Forecasts, European Crisis and the New Middle Class in Brazil (with special reference to women) Coordination: Marcelo Neri

Transcript of Back to the Country of the Future

Page 1: Back to the Country of the Future

Back to the Country of the Future:

Forecasts, European Crisis and the New Middle Classin Brazil (with special reference to women)

Coordination: Marcelo Neri

Page 2: Back to the Country of the Future

Executive Summary: Outline• Chronicle of a New Foretold Crisis

– New Year, New Crisis? (The W of the Question)– After the Crisis (a Tsunamy or a ripple?)– Is the Brazilian Inequality in its lowest historical level?

• The Future of the Brazilian New Middle Class– Measures of Polarization and Conceptualization of the Middle Class– Class Scenarios for 2014– The Great Decade (2004 to 2014)

• Life Satisfaction Expectation– The Country of the Future– The Collective of Brazilian

• Are Women more Optimistic than Men?– Female´s Future Felicity: The Biggest in the World– The Future of Women (Women of the Future)

Page 3: Back to the Country of the Future

www.fgv.br/cps/ncm2014/eng

Page 4: Back to the Country of the Future

2,7

%

0,5

%

4,6

%

6,1

%

6,0

%

4,0

%

3,3

%

0,9

%

0,5

%

0,5

%

2,0

% 2,7

%

Renda Média

mai02 a mai08 mai08 a mai09 mai09 a mai10 mai10 a mai11 jun10 a jun11 jul10 a jul11

ago10 a ago11 set10 a set11 out10 a out11 nov10 a nov11 dez10 a dez11 jan11 a jan12

Average Income

Per Capita Income Changes over previous 12 Month

Source: CPS/FGV from the PME/IBGE microdata

All the major inflections of the income distribution over the last 20 years wereantecipated by PME www.fgv.br/cps/debatesocial Growth slows in the end of the year: post-new crisis but also high initial basis in 2010 due to presidential election bussiness cycle and to the resumption from the previouscrisis. Growth accelerates again from October onwards until al least January 2012

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2,7

%

-1,5

%

-7,5

%

0,5

%

0,3

% 2,1

%4,6

%

-1,9

%

-8,8

%

6,1

%

-1,2

%

-11

,7%

2,7

%

-2,1

%

-7,9

%

Renda Média Gini Pobreza

mai02 a mai08 mai08 a mai09 mai09 a mai10 mai10 a mai11 jan11 a jan12

PovertyAverage Income

Recent Evolution

Source: CPS/FGV from the PME/IBGE microdata

The combination of Growth and inequality fall lead to a fall in poverty.

Page 6: Back to the Country of the Future

Chronicle of the Crisis (until January 2012)• The european crisis hasn’t reached the pocket of the

Brazilians at least not those in the basis of the distribution.

• Growth of per capita household income of 2,7% in 12 meses, matching with the growth from 2002-08 andsuperior to the 0% produced in 2009 as a result of the 2008 crisis and the -4,57% from the Asian+ Russian crisis (end of1990s).

• In 12 months ended in January 2012 poverty falls 7,9%, three times faster than the UN Millenium Goal.

• In the 12 months ended in January 2012 the Gini falls at a 2,1%, rate almost 50% faster than the one from the firstyears of the last decade, which became known as theperiod of the fall of inequality,.

Page 7: Back to the Country of the Future

0,5367

0,58280,5902

0,6091

0,5957

0,54480,5377

0,5190

0,46

0,48

0,5

0,52

0,54

0,56

0,58

0,6

0,62

1960# 1970 1979 1990 2001 2009 2010* 2012 Jan*

Long-term Vision – The Minimum of Brazilian Inequality

Source: CPS/FGV from microdata the PNAD (September), PME e Censo / IBGE e Langoni 1973.

obs: PNAD adjusted by # Census e *PME.

The Brazilian Gini falls from 0.596 in 2001 to 0.519 in Janeiro 2012,almost 3.3% lower than its minimal historical level since 1960.

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Evolution of Different Income Groups(50%-, 40% e 10%+) Share in Income

12

.16

%

12

.09

%

10

.56

%

12

.12

%

12

.35

%

12

.16

%

36

.41

%

39

.52

%

38

.47

%

39

.28

%

40

.11

%

40

.52

%

51

.43

%

48

.40

%

50

.97

%

48

.60

%

47

.54

%

47

.32

%

1976 1985 1989 1993 1995 1997

50 - 40 10 +1

2.6

5%

12

.55

%

13

.19

%

14

.10

%

14

.74

%

15

.39

%

40

.30

%

40

.20

%

40

.72

%

40

.78

%

41

.65

%

41

.78

%

47

.05

%

47

.25

%

46

.09

%

45

.12

%

43

.61

%

42

.83

%

1999 2001 2003 2005 2007 2009

50 - 40 10 +

Source: CPS/FGV from the PNAD/IBGE microdata

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Polarization and Inequality: Parallels

0.2

5

0.2

6

0.2

6

0.2

7

0.2

6

0.2

6

0.2

6

0.2

6

0.2

6

0.2

5

0.2

5

0.2

5

0.2

4

0.2

4

0.2

3

0.2

3

0.5

8

0.6

1

0.6

0

0.6

0

0.6

0

0.6

0

0.5

9

0.6

0

0.5

9

0.5

8

0.5

7

0.5

7

0.5

6

0.5

6

0.5

5

0.5

4

0.5400.5480.5560.5640.5720.5800.5880.5960.6040.612

0.2300

0.2350

0.2400

0.2450

0.2500

0.2550

0.2600

0.2650

0.2700

19

92

19

93

19

95

19

96

19

97

19

98

19

99

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

PER

Gini

Source: CPS/FGV from the PNAD/IBGE microdata

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Inequality in Per Capita Familiar IncomePOF and PNAD are Very Similar

048

12162024283236404448525660646872768084889296

1001 4 7

10

13

16

19

22

25

28

31

34

37

40

43

46

49

52

55

58

61

64

67

70

73

76

79

82

85

88

91

94

97

10

0

Re

nd

a

População

PNAD 2002-2003

POF 2002-2003

Source: CPS/FGV from the PNAD/IBGE microdata

As the difference resumes into the means and our classes were defined by the relative

distribution, we just need to multiply the values of the PNAD by the POF factor,

mantaining the same proportions in each class.

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Measures of Polarization andConceptualization of Middle Class

• The EGR strategy generates brackets of income classes of theincome distribution observed in practice. The brackets chosenwere the ones which better distinguish the 3 groups in a sense that they select the lowest possible differences insidethem and on the other hand maximize the differencesbetween groups. We initially calculated the brackets ofincome for the case of 3 segments (AB, C e DE) .

• We made an adjustment in the brackets of classes by the POF, which is the most complete in capturing different incomesources, but without changing the percentages themselves.

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Definição das Classes Econômicas

limites

Inferior Superior

Classe E 0 1085

Classe D 1085 1734

Classe C 1734 7475

Classe B 7475 9745

Classe A 9745

* ajustado pela POF

** atualizado a preços de julho de 2011

Source: CPS/FGV from the PNAD/IBGE microdata

Classes and Total Household Income (calculated by per capita terms)

Definition of Economic Classes

Limits

Class EClass DClass CClass BClass A

*Adjusted by POF**Updated to July 2011 Prices

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Classes Scenarios until 2014 Per Capita Familiar Income (R$) by State of the Federation

Income Levels in 2009 Income Variation 2001 a 2009

Menos de 10%

de 10% a 20%

de 20% a 30%

de 30% a 40%

Mais de 40%

Aumento Acumulado da RendaFamiliar Per Capita - 2001-2009

Renda Per Capita Média 2009

226.72 - 609.15

609.15 - 991.58

991.58 - 1374.01

1374.01 - 1756.44

1756.44 - 2138.87

Fonte: CPS/FGV a partir dos microdados da PNAD/IBGE

Page 14: Back to the Country of the Future

Source: CPS/FGV from the PNAD/IBGE microdata

Evolution of the Mean Per Capita Household Income by UFs1993, 1995, 2003, 2009 e 2014

1993

1995

2003

2009 2014

Renda Per Capita Média 1993

226.717 - 609.15

609.15 - 991.58

991.58 - 1374.01

1374.01 - 1756.44

1756.44 - 2138.87

Renda Per Capita Média 1995

226.72 - 609.15

609.15 - 991.58

991.58 - 1374.01

1374.01 - 1756.44

1756.44 - 2138.87

Renda Per Capita Média 2003

226.72 - 609.15

609.15 - 991.58

991.58 - 1374.01

1347.01 - 1756.44

1756.44 - 2138.87

Renda Per Capita Média 2009

226.72 - 609.15

609.15 - 991.58

991.58 - 1374.01

1374.01 - 1756.44

1756.44 - 2138.87

Renda Per Capita Média 2014

226.74 - 609.15

609.15 - 991.58

991.58 - 1374.01

1374.01 - 1756.44

1756.44 - 2138.87

Page 15: Back to the Country of the Future

25

1,0

1

26

5,2

9

28

6,0

8

31

6,4

1

33

5,3

1

35

9,8

7

37

5,0

0

45

4,7

7

48

5,5

3

52

0,0

0

200,00

250,00

300,00

350,00

400,00

450,00

500,00

550,00

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Median Per Capita Household Income

Source: CPS/FGV from the PNAD/IBGE microdata

Future Scenarios

Page 16: Back to the Country of the Future

47

7,8

9

49

2,4

5

52

4,7

4

57

2,6

8

58

5,5

0

61

7,6

5

63

0,2

5

72

9,2

2

76

6,2

5

80

5,5

4

400

450

500

550

600

650

700

750

800

850

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Mean per Capita Household Income

Source: CPS/FGV from the PNAD/IBGE microdata

Future Scenarios

Looking to the future is also to review expectations over time. We superestimated themean income growth in our forecasts but underestimate the inequality componentIn a way that the two errors cancel each other reasonably well, resulting in the fact thatthe ascendent trajectories of the upper classes are mantained. It increases the relativeweight of the inequality effect versus pure income effects in the distributional changeobserved.

Page 17: Back to the Country of the Future

0,5

82

98

0,5

71

1

0,5

68

23

0,5

62

27

0,5

55

01

0,5

48

6

0,5

44

76

0,5

26

18

0,5

20

08

0,5

14

07

0,5

0,51

0,52

0,53

0,54

0,55

0,56

0,57

0,58

0,592

00

3

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Gini Index

Source: CPS/FGV from the PNAD/IBGE microdata

Future Scenarios - Inequality

Page 18: Back to the Country of the Future

Composição de Classes 1992 a 2014*

Composição de Classes 1992 a 2014

Avaliando o Impacto da Desigualdade**

*crescimento de classes projetado de 2010 a 2014– com redução de desigualdade

** crescimento de classes projetado de 2010 a 2014 – com e sem redução de desigualdade

The inequality impact: scenarios of the samegrowth with inequality fallingX no fall (that menas, just growth):The proportion of the classe C population in 2014 :60,1% with inequality fallingX 56,4% with pure growth.

The inequality-effect considers the differences ofGrowth between states and the ones withineach state (a separate model for each)

Prospective Classes Scenarios

Source: CPS/FGV from the PNAD/IBGE microdata

Class Composition 1992 to 2014*

Class Composition 1992 to 2014*Assessing Inequality Impact

*class growth forecasted onwards 2010 to 2014 – with inequality reduction** class growth forecasted onwards 2010 to 2014 – with and withouti nequality reduction

Page 19: Back to the Country of the Future

28

,12

25

,4

22

,8

19

,32

18

,26

16

,02

15

,32

10

,92

9,6

8,5

9

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

26

,73

27

,16

27

,06

26

,35

25

,11

24

,35

23

,62

19

,31

17

,83

16

,36

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

37

,56

39

,73

41

,81

44

,94

46

,9 49

,22

50

,45 56

,89

58

,75

60

,19

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

7,6 7,7

1

8,3

2 9,4 9,7

4

10

,41

10

,61 1

2,8

7

13

,82

14

,85

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Source: CPS/FGV from the PNAD/IBGE microdata

Classe E - % Classe D - %

Classe C - %Classe AB - %

Forecasts to 2014 (with inequality-effect and growth effect combined) – Economic Classes

Page 20: Back to the Country of the Future

28

,30

25

,50

22

,83

19

,40

18

,34

15

,97

15

,14

10

,72

9,3

9

8,4

1

27

,95

25

,3

22

,78

19

,23

18

,17

16

,06

15

,5

11

,11

9,8

8,7

7

0

5

10

15

20

25

30

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Homem

Mulher

Classe E Classe D

26

,81

27

,19

27

,12

26

,16

24

,95

24

,17

23

,46

19

,22

17

,74

16

,232

6,6

5

27

,14

27

,01

26

,52

25

,26

24

,52

23

,78

19

,4

17

,92

16

,49

10

15

20

25

30

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Homem

Mulher

Classe C Classe AB

37

,37

39

,68

41

,78

45

,08

46

,95

49

,45

50

,81

57

,20

59

,09

60

,57

37

,73

39

,78

41

,85

44

,8

46

,85 49

50

,1 56

,61

58

,43

59

,84

10

20

30

40

50

60

70

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Homem

Mulher7

,52

7,6

4

8,2

7 9,3

5

9,7

6

10

,41

10

,59 1

2,8

6

13

,77

14

,79

7,6

6

7,7

8

8,3

7 9,4

5

9,7

1

10

,42

10

,62 1

2,8

7

13

,85

14

,91

2

4

6

8

10

12

14

16

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Homem

Mulher

Source: CPS/FGV from the PNAD/IBGE microdata

Future Scenarios of Classes opened by gender

As an economic class is a household concept there is no difference between men andwomen, that’s why individual concepts such as education, income and happiness are more relevant in terms of gender .

Page 21: Back to the Country of the Future

% Classe ABC 1995

13.01 - 28.32

28.32 - 43.63

43.63 - 58.93

58.93 - 74.24

74.24 - 89.55

% Classe ABC 2003

13.01 - 28.32

28.32 - 43.63

43.63 - 58.93

58.93 - 74.24

74.24 - 89.55

% Classe ABC 2009

13.01 - 28.32

28.32 - 43.63

43.63 - 58.93

58.93 - 74.24

74.24 - 89.55

% Classe ABC 2014

13.01 - 28.32

28.32 - 43.63

43.63 - 58.93

58.93 - 74.24

74.24 - 89.55

Source: CPS/FGV from PNAD/IBGE microdata

% Classe ABC 1993

13.01 - 28.32

28.32 - 43.63

43.63 - 58.93

58.93 - 74.24

74.24 - 89.55

Evolution of the Population Share of Class ABC between Brazilian States 1993, 1995, 2003, 2009 e 2014

1993

1995

2003

2009 2014

Page 22: Back to the Country of the Future

Populational Pyramid and Economic Classes 2003, 2011 e 2014

Source: CPS/FGV from PNAD/IBGE microdata

In the 2003-14 period, 52,1 million people will join class C and another 15,7 million onclasses AB. A total of 67,8 million, bigger than the UK population.Remarkably, given the contraction of consumer markets in developed countries.

Time changes: Class C: + 40 million people in 2003-11 and + 13 million in 2012-14. Classes AB: + 9,2 million people from 2003 to 2011 and + 7,7 million from 2012 to 2014.

AB population will grow proportionally more than C: 29,3% and 11,9%, respectively.We’ll talk more and more about New Class AB in the future as we did up to now withrespect to the so called New Class C.

96.205.81463.592.062 48.919.137

65.879.496105.468.908 118.013.742

13.330.25022.526.223

29.116.200

Classe DE Classe C Classe AB

Page 23: Back to the Country of the Future

92.868.780 83.296.780 96.205.814

45.646.118 55.359.38965.879.496

8.825.702 12.930.328

13.330.250

Classe DE Classe C Classe AB

Source: CPS/FGV from PNAD/IBGE microdata

Populational Pyramid and Economic Classes 1993, 1995 e 2003

From the changes in 1993-2003 period, a big one was between 1993 and 1995, originated by the Real Plan boom occured after July 1994.

Page 24: Back to the Country of the Future

Populational Pyramid and Economic

Classes 1993 e 2014

92.868.78048.919.137

45.646.118118.013.742

8.825.702

29.116.200

Classe DE Classe C Classe AB

Source: CPS/FGV from PNAD/IBGE microdata

Changes in forecasted classes between 1993 and 2014 indicates 21 million peoplemigrating to the classes AB and 83 million to the class C.

These actually configure remarkable decades after the so called Brazilian lost 1980’s and beginning of 1990s.

Page 25: Back to the Country of the Future

Future Happiness (Life Satisfaction in Five Years) - 2015

Felicidade Futura (2015)

2.8 - 4

4 - 5.19

5.19 - 6.39

6.39 - 7.58

7.58 - 8.78

No Data

Source: Center for Social Policies – CPS/FGV from Gallup World Poll

Page 26: Back to the Country of the Future

0,00

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2,00

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World Future Happiness - 2015

Brazil is the world champion of Future Happiness in 2015 (actuallyfour-times champion in the 4 CPS/FGV Researches on the topic)

Source: Center for Social Policies – CPS/FGV from Gallup World Poll

Page 27: Back to the Country of the Future

Future Felicity Index (FFI) World Rank – 2015 BRICS, PIIGS & BIGs

IFF Rank IFF Rank

Brazil 8.6 1 Mali 6.6 86

Costa Rica 8.2 6 Congo 6.5 91

Denmark 8.1 11 Turkey 6.5 96

Ireland 8.0 16 Morocco 6.4 101

Switzerland 7.8 21 Russian Federation 6.4 105

U. Kingdom 7.7 26 Senegal 6.4 106

South Africa 7.7 27 China 6.2 111

Netherlands 7.6 31 Slovenia 6.2 116

Austria 7.5 36 India 6.1 119

Argentina 7.4 41 Iraq 6.1 121

Uruguay 7.3 46 Sri Lanka 6.0 126

Peru 7.2 51 Estonia 5.8 131

Italy 7.1 56 Egypt 5.7 136

France 7.0 61 Haiti 5.4 141

Germany 7.0 62 Greece 5.3 145

Honduras 6.9 66 Portugal 5.2 146

Indonesia 6.8 71 Macedonia 5.0 151

Bangladesh 6.7 76 Syrian Arab Republic 4.7 156

Spain 6.7 81

Source: Center for Social Policies – CPS/FGV from Gallup World Poll

Page 28: Back to the Country of the Future

Future Felicity Index (FFI)

• FFI allows us to reconcile two qualifications awarded to Brazil: country of the future and young country (because the future happiness falls with age see next slide)

• The “Brasileiro, Profissão Esperança” (Brazilian, ProfessionHope) is also the spirit of the new middle class, that life willimprove.

• The expectation of the nation is almost two points lower thanthe sum of happiness of each brazilian. The problem is more from Brazil than from each Brazilian.

• How can each Brazilian expect so much for his/her life and atthe same time give a grade so low to the life of all? The grade of all can’t overcome the nation mean grade.

• The Brazilian major problems were not (or are) individual, butcollective: inequality, inflation, informality, violence, lack ofdemocracy, corruption etc. We can evolve a lot as a society.

Page 29: Back to the Country of the Future

Life Satisfaction with respect to different moments & Life Cycle (Age)

4.5

5

5.5

6

6.5

7

7.5

19

22

25

28

31

34

37

40

43

46

49

52

55

58

61

64

67

70

73

76

79

Passado Presente Futuro

Source: Center for Social Policies – CPS/FGV from Gallup World Poll microdata

Past Present Future

Page 30: Back to the Country of the Future

Who is expect higher happiness: males orfemales?In the World:

• Women report greater happiness than men: in the future (6.74 women X 6.69 men), in the present (5.35 women X 5.31 men) and in the past (4.94 from women against 4.92 from men).

• Single women are happier than married ones? Data indicates that singlewomen show mean future happiness of 7.28 against 6.68 of marriedones.On the other hand, unmarried women show lower levels of happiness(separated 6.57 and divorced 6.46). In the widows case, the means are lower: 5.6.

• Women with children under 15 years of age report greater life satisfactionexpectation (7.02) than those who don’t (6.73).

• However, there is a particular age effect happening on people’s future happiness. The younger the person, more future happiness, which couldexplain the fact that unmarried are more optimistic than widows for example.

Page 31: Back to the Country of the Future

After all, who is expects higher happiness: married women or single ones?

In the World: • Comparing women at the same age bracket (25 to 29 years). Data indicates

that single women have a mean future happiness of 7.4, against 7 frommarried. The “mismatched” show lower levels of happiness (both separatedand divorced have 6.6). In the widows case, the means are even lower 5.4.

• There is evidence that future happiness of those that stay unmarried fallsmore as age increases. For example, at the 50 to 54 years bracket it falls to 6.2, against 6.4 of married, reversing positions.

• In order to compare with a llok on statistical significance, we ran a multinomial ordered logit model that informs us that taking females withthe same age, number of minor children, living at the same country etc (allstatistically different between themselves) happiness expectation is in descending order (unmarried, married, consensual unions, separated, divorced and widow.

Page 32: Back to the Country of the Future

Felicidade Futura Fem.

2.58 - 4

4 - 5.19

5.19 - 6.39

6.39 - 7.58

7.58 - 8.98

No Data

Felicidade Futura Masc.

2.58 - 4

4 - 5.19

5.19 - 6.39

6.39 - 7.58

7.58 - 8.98

No Data

Gender, Geography and Future Happiness (2011), Life Satisfaction in 5 Years, by gender

Source: Center for Social Policies – CPS/FGV from Gallup World Poll

microdata

Females

Males

Page 33: Back to the Country of the Future

Mulheres

Homens

Diferença

IFF Rank

IFF Rank

IFF Rank

Mundo 6.74 -

6.69 -

0.05 -

Americas 7.22 -

7.1 -

0.12 -

brazil 8.98 1 8.56 1 0.42 0

denmark 8.51 3 8.52 2 -0.01 1

ireland 8.42 4 8.23 5 0.19 -1

switzerland 7.96 18 7.67 24 0.29 -6

united kingdom 7.89 22 7.68 23

0.21 -1

argentina 7.82 23 7.5 29 0.32 -6

costa rica 7.78 24 7.86 17 -0.08 7

austria 7.76 25 7.63 25 0.13 0

france 7.73 26 7.72 21 0.01 5

netherlands 7.67 29 7.44 34 0.23 -5

egypt 7.32 43 6.71 69 0.61 -26

spain 7.28 45 7.43 36 -0.15 9

italy 7.28 44 6.94 54 0.34 -10

morocco 7.27 46 6.95 53 0.32 -7

senegal 7.21 47 7.01 50 0.2 -3

honduras 7.17 51 7.25 43 -0.08 8

mali 7.13 52 7.46 31 -0.33 21

uruguay 7.12 53 7.08 48 0.04 5

south africa 6.87 61 6.8 63 0.07 -2

greece 6.81 62 6.2 92 0.61 -30

india 6.76 64 6.87 57 -0.11 7

germany 6.67 71 6.91 56 -0.24 15

peru 6.62 75 6.68 71 -0.06 4

china 6.61 76 6.44 85 0.17 -9

indonesia 6.57 79 6.23 91 0.34 -12

sri lanka 6.32 89 6.31 87 0.01 2

turkey 6.26 92 5.44 122 0.82 -30

bangladesh 6.16 94 5.85 109 0.31 -15

estonia 6.37 88 6.47 83 -0.1 5

russia 6.1 101 6.3 88 -0.2 13

slovenia 5.89 104 6.47 84 -0.58 20

portugal 5.68 113 6.02 102 -0.34 11

macedonia 5.48 123 5.5 121 -0.02 2

iraq 5.46 124 5.4 124 0.06 0

haiti 5.01 130 5.18 127 -0.17 3

zimbabwe 4.04 132 4.03 132 0.01 0

Source: Center for Social Policies – CPS/FGV from Gallup World Poll microdata

IFF

2011

Women

X

Men

Females Males Difference

Page 34: Back to the Country of the Future

Who is happier?: Brazilian females or males?

• The Brazilian women are happier than men in the future(8.98 her against 8.56 his) and in the present(6.73 heragainst 6.54 his).

• An statistical model which shows that no country hasfuture happiness levels (with and without statisticalcontrols (age, etc)) higher than that found in Brazil.

• No other country reveals future happiness genderdifferences more favorable to females than Brazil.

• Concluding: Brazil is not only the world champion infuture happiness on female and male leagues, but alsowith respect to differences between genders, with womenon top.

Page 35: Back to the Country of the Future

Future Happiness Simulator

Source: Center for Social Policies – CPS/FGV from Gallup World Poll microdata

http://www.fgv.br/cps/bd/ncm2014/IndiceFelicidade_eng/index.htm

Page 36: Back to the Country of the Future

Why women are happier than men in Brazil?Mean Schooling – age over 25 years:

5,0

6

5,1

6

5,2

8 5,4

4

5,5

0 5,6

4

5,6

9 5,9

4 6,1

1

6,2

4 6,3

9

6,5

0 6,7

0 6,8

4 7,0

1 7,1

6

4,9

1 5,0

6 5,2

5 5,4 5

,51

5,6

4

5,7

5 6,0

5 6,2

2 6,3

7 6,5

4

6,6

6 6,8

9 7,0

4 7,2

3 7,3

7

4

4,5

5

5,5

6

6,5

7

7,5

81

99

2

19

93

19

95

19

96

19

97

19

98

19

99

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

Homem

Mulher

There was a reversion in adult population schooling by gender: was 5,1 in 1992 (his), against 4,91 (her) and passes to 7,2 (his) against 7,4 (her) in 2009.1996 was the year females overtook males

Source: CPS/FGV from PNAD/IBGE microdata

Males

Females

Page 37: Back to the Country of the Future

Mean Individual Income:: Income

57

1,8

5

61

1,0

1 73

7,6

8

73

8,0

2

74

0,6

3

74

4,4

5

67

1,6

8

69

1,5

6

68

2,7

7

63

7,8

0

65

1,8

8

68

8,0

6

74

1,0

5

75

8,6

2

79

4,7

2

80

6,5

4

21

5,4

9

22

4,2

6

29

6,8

3

31

3,4

1

31

6,4

1

32

8,1

3

31

2,5

3

34

0,0

5

34

8,6

6

33

1,3

8

34

7,6

2

37

6,0

4

41

9,3

9

42

6,9

5

45

5,3

1

46

8,3

1

4

104

204

304

404

504

604

704

804

9041

99

2

19

93

19

95

19

96

19

97

19

98

19

99

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

Homem

MulherFemale

Male

There was a reduction in the income differential between men and women. It was 62% in 1992, and it is 42% in 2009.

Source: CPS/FGV from PNAD/IBGE microdata

Page 38: Back to the Country of the Future

84

,77

91

,25

10

6,3

6

10

8,2

0

10

9,0

6

12

5,9

1

12

1,5

1

12

2,2

5

12

3,4

3

11

7,1

4

12

0,3

9

12

9,4

2

13

7,4

7

13

5,2

6

14

4,7

8

14

7,8

9

58

,39

63

,89

80

,41

85

,25

88

,82

96

,97

97

,6

10

6,1

3

11

0,4

8

10

9,3

1

11

6,2

2

12

5,9

6

14

1,6

1

13

8,5

7

15

2,5

1

15

5,6

4

24

44

64

84

104

124

144

164

19

92

19

93

19

95

19

96

19

97

19

98

19

99

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

Homem

Mulher

Other Income Sources (Individual)

Source: CPS/FGV from PNAD/IBGE microdata

48

7,0

8

51

9,7

6 63

1,3

2

62

9,8

2

63

1,5

7

61

8,5

4

55

0,1

7

56

9,3

1

55

9,3

4

52

0,6

6

53

1,4

9

55

8,6

4

60

3,5

8

62

3,3

6

64

9,9

4

65

8,6

5

15

7,1

16

0,3

7

21

6,4

2

22

8,1

6

22

7,5

9

23

1,1

6

21

4,9

3

23

3,9

2

23

8,1

8

22

2,0

7

23

1,4

25

0,0

8

27

7,7

8

28

8,3

8

30

2,8

31

2,7

1

4

104

204

304

404

504

604

704

8041

99

2

19

93

19

95

19

96

19

97

19

98

19

99

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

Homem

Mulher

Males

Labor

Non Labor

Males

Females

Female

1996 was the year females overtook males in other income sources Bolsa Familia, Retirementbenefits

Page 39: Back to the Country of the Future

Income Variation

2001 2009 Var

Mean Individual Income

Male 691.56 806.54 16.63%

Female 340.05 468.31 37.72%

Labor Income

Male 569.31 658.65 15.69%

Female 233.92 312.71 33.68%

Income from Other Sources

Male 122.25 147.89 20.97%

Female 106.13 155.6 46.61%

Source: CPS/FGV from PNAD/IBGE microdata

Page 40: Back to the Country of the Future

15 a 60 years – Total

Gender

Category YearIncome from

all Labors

Hour-Wage(Positive

Income) byYears of

SchoolingYears of

SchoolingWorkedHours

EAPOccupation

RateParticipationRate on Labor

Marketx x x x

Man

2011 1264,88 3,98 9,74 44,02 0,91 0,81

2003 647,88 2,51 8,61 44,96 0,82 0,81

AccumulatedGrowthRate(%) 95,23% 58,57% 13,12% -2,09% 10,98% 0%

Woman

2011 693,6 3,06 10,45 39,97 0,88 0,62

2003 314,65 1,89 9,3 39,75 0,76 0,59

AccumulatedGrowthRate(%) 120,44% 61,9% 12,37% 0,55% 15,79% 5,08%

Source: CPS/FGV from PME/IBGE microdata

Labor Income Decomposition

In the 2003-11 period, the labor income differential falls because of the wage-effect, but mainly because of the greater “effort to labor” (working journey, occupation andlabor participation)

Page 41: Back to the Country of the Future

Learn more about the Center for Social Policies researches at www.fgv.br/cps

New Middle Class

Page 42: Back to the Country of the Future

•Visit the Saraiva website

• March 7th, 2012, Wednesday, from 19h.• Bolsa de Valores (BOVESPA)• Rua XV de Novembro, 275, 1º andar, Centro - São Paulo - SP•

• March 9th, 2012 - Friday, from 19h.• Livraria da Travessa (Travessa Bookstore) in Shopping Leblon • Av. Afrânio de Melo Franco, 290 - Leblon - Rio de Janeiro – RJ

Marcelo Neri releases the book published by Editora Saraiva