What do we know about wealth inequality in Brazil?

Abstract

The concentration of wealth has been gaining importance in the international
debate after the publication of Capital in the 21st century, by Thomas Piketty, which collect-ed systematic data on the dimension and evolution of the phenomenon in advanced economies
over the last few centuries. In particular, Piketty’s research reveals an important contraction
in wealth inequality throughout the 20th century, which, however, is not sustained
in the first decades of the 21st century. What do we know about the levels and historic trajectory
of wealth inequality in Brazil, one of the most unequal countries in the world? This
article investigates the available estimates on the concentration of wealth in the country
starting in the 17th century. The review is organized based on the different sources and approaches
used to construct the estimates. Two conclusions stand out: a) the concentration of
wealth presents extreme levels and notable stability over time, despite a profound transformation
in the relative importance of assets; b) all available estimates have significant limitations.
The availability of adequate public data, together with the improvement of procedures
already applied, is essential for the development of literature on wealth inequality in the
country and effective public engagement with the question.

JEL Classification: D31; D63; E01.