Efeitos do Fundo Constitucional de Financiamento do Nordeste (FNE) sobre a redução da desigualdade de renda do Nordeste : uma abordagem quantitativa

Abstract

This research aims to analyze the effects of the Northeast Constitutional Financing Fund (FNE) on income inequality in the Northeast region of Brazil. To this end, data on average labor income, wage bill, indicators of intra-regional inequality (Gini and Palma coefficient), female participation (ratio of average female labor income in relation to average male income), agricultural, industry and services location coefficients and other socioeconomic variables, having as source the Relação Anual de Informações Sociais and the Instituto Brasileiro de Geografia e Estatística The main empirical strategy is based on the multiple linear regression model with panel data and fixed effects of municipal observations in the Northeast region, including specific geographic areas: northeastern semiarid, metropolitan regions, immediate and specific regions. The results found indicate that the FNE meets its income generation target, since the calculated effects were approximately 46% on the wage bill. On the other hand, with regard to inequality indicators, the estimates show that the Fund tends to increase the concentration of income in the region, a result that differs from that expected within the scope of public policy. It is worth highlighting the situation in the semi-arid region, where slightly higher coefficients were recorded when compared to the municipal model, indicating that the FNE contributed, during the specific period, to the increase in labor income inequality in these municipalities.