Publication:
Estimating a Poverty Line for Brazil Based on the 2017/18 Household Budget Survey

Loading...
Thumbnail Image
Files in English
English PDF (845.57 KB)
473 downloads
English Text (101.81 KB)
23 downloads
Published
2021-12
ISSN
Date
2021-12-16
Editor(s)
Abstract
This study applies the cost-of-basic-needs approach to estimate food and total poverty lines for the Brazilian case. Using detailed data on expenditures from a 2017/18 household budget survey and caloric information from the Brazilian Table of Food Composition, calorie intake is assigned to more than 1,400 items to estimate the cost per calorie for a representative group of the population. The preferred results estimate the value of the food poverty line at R$258 (in 2018 urban Southeast prices), and the lower total poverty line (covering also nonfood necessities) at R$455. Robustness checks show that varying the assumptions leads to qualitatively similar results. The findings are also close in value to lines found in earlier studies and the societal poverty line. Finally, this work provides a data-driven validation of the income threshold used to determine eligibility for Brazil’s social registry.
Link to Data Set
Citation
Lara Ibarra, Gabriel; Paffhausen, Anna Luisa; Duque, Daniel. 2021. Estimating a Poverty Line for Brazil Based on the 2017/18 Household Budget Survey. Policy Research Working Paper;No. 9878. © World Bank. http://hdl.handle.net/10986/36736 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    Climate and Social Sustainability in Fragility, Conflict, and Violence Contexts
    (Washington, DC: World Bank, 2026-01-07) Cuesta Leiva, Jose Antonio; Huff, Connor
    Climate change is widely recognized as a driver of violent conflict, but its broader social effects remain less understood. Ignoring these dimensions risks a vicious cycle where climate policies might undermine socially just adaptation. Evidence is still limited on how climate shocks influence political participation, trust, or migration. This paper helps fill that gap by examining links between climate change, conflict, and social sustainability, with a focus on inclusion, resilience, cohesion, and legitimacy. Using secondary data from 2019–24, the study applies simple correlation-based methods to test three hypotheses on the nature, severity, and composition of these associations. The analysis combines multiple climate impact measures, new conflict classifications, recent social sustainability frameworks, and controls for population and geography. The results reveal strong correlations—not causation—between climate events and contexts of fragility, conflict, and violence. Climate impacts are most pronounced in both national and subnational conflict settings. The study also finds robust links between fragility, conflict, and violence and low levels of social sustainability, reflecting its role as both a driver and consequence of conflict. Some dimensions—such as violent events and insecurity—appear weaker in areas most affected by climate shocks. Two of the hypotheses are supported, and one remains inconclusive.
  • Publication
    The Macroeconomic Implications of Climate Change Impacts and Adaptation Options
    (Washington, DC: World Bank, 2025-05-29) Abalo, Kodzovi; Boehlert, Brent; Bui, Thanh; Burns, Andrew; Castillo, Diego; Chewpreecha, Unnada; Haider, Alexander; Hallegatte, Stephane; Jooste, Charl; McIsaac, Florent; Ruberl, Heather; Smet, Kim; Strzepek, Ken
    Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.
  • Publication
    Institutional Capacity for Policy Implementation: An Analytical Framework
    (Washington, DC: World Bank, 2026-01-07) Kim, Galileu; Kumar, Tanu; Ramalho, Rita; Russell, Stuart
    State capacity is an important prerequisite for policy implementation, yet at the country level it is difficult to measure, assess, and reform. This paper proposes a focus on institutional capacity: the ability of public institutions to implement the specific policy mandates for which they are responsible. Based on a review of existing literature, the paper defines the different dimensions that compose institutional capacity and groups them into two cross-cutting categories: organizational dimensions (personnel, financial resources, information systems, and management practices) and governance dimensions (transparency, independence, and accountability). The paper proposes measures for organizational and governance dimensions using existing data, shows intra-institutional variation of these measures within countries, and discusses how new data could be collected for better measurement of these concepts. Finally, the paper illustrates how the framework can be used to diagnose the sources of common problems related to weak policy implementation.
  • Publication
    South Africa’s Fragmented Cities: The Unequal Burden of Labor Market Frictions
    (Washington, DC: World Bank, 2026-01-08) Baez, Javier E.; Kshirsagar, Varun
    Using high-resolution administrative, census, and satellite data, this paper shows that South African cities are characterized by spatial mismatches between where people live and where jobs are located, relative to 20 global peers. Areas within 5 kilometers of commercial centers have 9,300 fewer residents per square kilometer than expected, which is 60 percent below the global median. Poor, dense neighborhoods are most affected. In Johannesburg, a 10-percentile increase in distance from the nearest business hub corresponds to a 3.7-percentile drop in asset wealth (a proxy of household wellbeing) and 4.9-percentile drop in employment. In Cape Town, the declines are 4.0 and 3.7 percentiles, respectively. Employment is 87 percent lower in the poorest decile than the richest in Johannesburg and 61 percent lower in Cape Town. These findings suggest that South Africa’s spatial organization of people and economic activity constrains agglomeration and reinforces inequality. This methodology provides a scalable and standardized data-driven framework to analyze spatial accessibility and agglomeration frictions in complex, data-constrained urban systems.
  • Publication
    Investment in Emerging and Developing Economies
    (Washington, DC: World Bank, 2026-01-07) Adarov, Amat; Kose, M. Ayhan; Vorisek, Dana
    The world faces a pressing challenge to meet key development objectives amid slowing growth and rising macroeconomic and geopolitical risks. With the number of job seekers rising rapidly, infrastructure shortfalls continuing to be large, and climate costs mounting, the case for a significant investment push has never been stronger. Yet the capacity to respond in many emerging markets and developing economies has eroded. Since the global financial crisis, investment growth has slowed to about half its pace in the 2000s, with both public and private investment weakening. Foreign direct investment inflows—a critical source of capital, technology, and managerial know-how—have also fallen sharply and become increasingly concentrated, leaving low-income countries with only a marginal share. The risks of further retrenchment are significant, as trade tensions, policy uncertainty, and elevated debt levels continue to weigh on investment. Reigniting momentum will require ambitious domestic reforms to strengthen institutions, rebuild macro-fiscal stability, and deepen trade and investment integration—the foundations of a supportive business climate. At the same time, international cooperation is indispensable. A renewed commitment to a predictable system of cross-border trade and investment flows, combined with scaled-up financial support and sustained technical assistance, is essential to help emerging markets and developing economies—especially low-income countries and economies in fragile and conflict situations—bridge financing gaps and implement the domestic reforms needed to restore investment as an engine of growth, jobs, and development.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    March 2024 Update to the Poverty and Inequality Platform (PIP)
    (Washington, DC: World Bank, 2024-04-01) Castaneda Aguilar, R. Andres; Castillo, Adriana; Devpura, Nancy P.; Dewina, Reno; Diaz-Bonilla, Carolina; Edochie, Ifeanyi; Farfan Bertran, Maria G.; Fernandez Romero, Jaime; Foster, Elizabeth; Fujs, Tony H. M. J.; Gonzalez Icaza, Maria F.; Jolliffe, Dean; Knippenberg, Erwin W.; Krishnan, Nandini; Lakner, Christopher; Lara Ibarra, Gabriel; Lestani, Diego G.; Mahler, Daniel G.; Montalvo Talledo, Veronica S.; Montes, Jose; Nguyen, Minh C.; Olivieri, Sergio; Paffhausen, Anna Luisa; Redaelli, Silvia; Saavedra, Trinidad B.; Sanchez Castro, Diana M.; Tetteh-Baah, Samuel K.; Viveros Mendoza, Martha C.; Wu, Haoyu; Yonzan, Nishant; Yoshida, Nobuo
    The March 2024 update to the Poverty and Inequality Platform (PIP) involves several changes to the data underlying the global poverty estimates. In particular, some welfare aggregates have been revised, and the CPI, national accounts, and population input data have been updated. This document explains these changes in detail and the reasoning behind them. Moreover, 101 new country-years have been added, bringing the total number of surveys to more than 2,300. Depending on the availability of recent survey data, global and regional poverty estimates are reported up to 2022. This is the first time PIP is reporting global poverty estimates post-2019, covering the period of the COVID-19 pandemic.
  • Publication
    Sources of Welfare Disparities Across and Within Regions of Brazil : Evidence from the 2002-03 Household Budget Survey
    (Washington, DC: World Bank, 2008-12) Katayama, Roy; Skoufias, Emmanuel
    Brazil's inequalities in welfare and poverty across and within regions can be accounted for by differences in household attributes and returns to those attributes. This paper uses Oaxaca-Blinder decompositions at the mean as well as at different quantiles of welfare distributions on regionally representative household survey data (2002-03 Household Budget Survey). The analysis finds that household attributes account for most of the welfare differences between urban and rural areas within regions. However, comparing the lagging Northeast region with the leading Southeast region, differences in returns to attributes account for a large part of the welfare disparities, in particular in metropolitan areas, supporting the presence of agglomeration effects in booming areas.
  • Publication
    Making Poor Haitians Count : Poverty in Rural and Urban Haiti Based on the First Household Survey for Haiti
    (Washington, DC: World Bank, 2008-03) Verner, Dorte
    This paper analyzes poverty in Haiti based on the first Living Conditions Survey of 7,186 households covering the whole country and representative at the regional level. Using a USD1 a day extreme poverty line, the analysis reveals that 49 percent of Haitian households live in absolute poverty. Twenty, 56, and 58 percent of households in metropolitan, urban, and rural areas, respectively, are poor. At the regional level, poverty is especially extensive in the northeastern and northwestern regions. Access to assets such as education and infrastructure services is highly unequal and strongly correlated with poverty. Moreover, children in indigent households attain less education than children in nonpoor households. Controlling for individual and household characteristics, location, and region, living in a rural area does not by itself affect the probability of being poor. But in rural areas female headed households are more likely to experience poverty than male headed households. Domestic migration and education are both key factors that reduce the likelihood of falling into poverty. Employment is essential to improve livelihoods and both the farm and nonfarm sector play a key role.
  • Publication
    Brazil : Measuring Poverty Using Household Consumption
    (Washington, DC, 2007-01) World Bank
    This report on measuring poverty using household consumption summarizes the work undertaken as part of the Brazil Poverty Measurement Study (BRAPOV) that supported a program of analytical work and technical support via an in-depth assessment of the measurement of poverty and inequality in Brazil. The survey not only presented an opportunity for in-depth analysis, but also for collaboration between the World Bank and partners in Brazil. Emphasis thus was placed also on process as a key input for impact, while at the same time balancing this objective with the need to deliver quality and timely analytical work. Specifically, the analysis in this report builds on earlier studies on the methodologies for constructing consistent poverty profiles and poverty lines (e.g. Bidani and Ravallion, 1994, Ravallion, 1998 and Kakwani, 2003) and on the measurement of poverty in Brazil in order to construct poverty lines for the different regions of Brazil; detailed spatial price indices to capture spatial variation in the cost of living; an updated poverty profile; and micro-area maps of poverty and inequality for Brazil.
  • Publication
    Snapshot of Poverty and Labor Market Outcomes in Lebanon Based on Household Budget Survey 2011-2012
    (World Bank, Washington, DC, 2016-05) Central Administration for Statistics; World Bank Group
    This brief is based on analysis of the 2011-12 household budget survey (HBS) implemented by Central Administration for Statistics (CAS) with technical assistance from the World Bank. The survey was conducted during the period of September 2011 to November 2012, and was stratified across nine regions. The sample was designed to cover 4,805 households, but due to high non-response, it only includes 2,476 participating households. Poverty numbers presented in this note are not comparable with poverty estimates for other years due to differences in the instruments, fieldwork implementation and to some extent sample design; and also due to differences in the methodology for constructing welfare aggregate and the poverty line. All regional estimates in this report should be viewed with caution given concerns about significant levels of nonresponse and relatively small sample sizes within regions. CAS and the World Bank are working together to improve the quality of future surveys.

Users also downloaded

Showing related downloaded files

  • Publication
    MIGA Annual Report 2013 : Insuring Investments, Ensuring Opportunities
    (Washington, DC: World Bank Group, 2013-10-11) Multilateral Investment Guarantee Agency
    In fiscal year 2013, Multilateral Investment Guarantee Agency (MIGA) issued 2.8 billion dollars in investment guarantees for projects in our developing member countries. At 1.5 billion dollars, representing more than half of new business, the bulk of MIGA's guarantees issued support investments in Sub-Saharan Africa. Sixty-nine percent of new business volume this year was in complex projects in infrastructure and extractive industries, a strategic priority for the Agency. This year, 82 percent of MIGA's new volume fell into one or more of strategic priority areas: investments in the world's poorest countries, "South-South" investments, investments in conflict-affected countries, and investments in complex projects. MIGA also established the conflict-affected and fragile economies facility to further deepen support to this priority area.
  • Publication
    The Firm-Level Impact of the Covid–19 Pandemic
    (World Bank, Washington, DC, 2020-09-02) World Bank
    The World Bank commissioned a firm-level survey to provide quantitative evidence of the impact of the Coronavirus (COVID-19) pandemic. Two rounds of data have now been collected for the months of March and May using a nationally representative World Bank survey providing information on the impact of the Coronavirus (COVID-19) pandemic. The survey includes five hundred firms spanning a wide range of industries and firm sizes, as well as the formal and informal sector. This note provides a snapshot of how the firms’ outcomes and response to the pandemic have changed between the months of March and May 2020.
  • Publication
    The Role of Social Ties in Factor Allocation
    (Published by Oxford University Press on behalf of the World Bank, 2019-10) Beck, Ulrik; Bjerge, Benedikte; Fafchamps, Marcel
    We investigate whether social structure helps or hinders factor allocation using unusually rich data from the Gambia. Evidence indicates that land available for cultivation is allocated unequally across households; and that factor transfers are more common between neighbors, co-ethnics, and kinship-related households. Does this lead to the conclusion that land inequality is due to flows of land between households being impeded by social divisions? To answer this question, a novel methodology that approaches exhaustive data on dyadic flows from an aggregate point of view is introduced. Land transfers lead to a more equal distribution of land and to more comparable factor ratios across households in general. But equalizing transfers of land are not more likely within ethnic or kinship groups. In conclusion, ethnic and kinship divisions do not hinder land and labor transfers in a way that contributes to aggregate factor inequality. Labor transfers do not equilibrate factor ratios across households. But it cannot be ruled out that they serve a beneficial role, for example, to deal with unanticipated health shocks.
  • Publication
    Impact of Migration on Economic and Social Development : A Review of Evidence and Emerging Issues
    (2011-02-01) Mohapatra, Sanket; Ratha, Dilip; Scheja, Elina
    This paper provides a review of the literature on the development impact of migration and remittances on origin countries and on destination countries in the South. International migration is an ever-growing phenomenon that has important development implications for both sending and receiving countries. For a sending country, migration and the resulting remittances lead to increased incomes and poverty reduction, and improved health and educational outcomes, and promote economic development. Yet these gains might come at substantial social costs to the migrants and their families. Since many developing countries are also large recipients of international migrants, they face challenges of integration of immigrants, job competition between migrant and native workers, and fiscal costs associated with provision of social services to the migrants. This paper also summarizes incipient discussions on the impacts of migration on climate change, democratic values, demographics, national identity, and security. In conclusion, the paper highlights a few policy recommendations calling for better integration of migration in development policies in the South and the North, improving data collection on migration and remittance flows, leveraging remittances for improving access to finance of recipient households and countries, improving recruitment mechanisms, and facilitating international labor mobility through safe and legal channels.
  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.