A history of inequality: top incomes in Brazil, 1926/2014
This paper uses income tax tabulations to estimate top income shares in Brazil over the long-run. Between 1926 and 2014, the concentration of income at the top remained very high, following a sine wave trend: top shares have ebbed and flowed over time, frequently in tandem with political and institutional disruptions. There is some evidence in favor of Williamson’s “missed levelling” hypothesis regarding the origins of Latin American exceptionally high levels of inequality, but the recent decline in inequality is cast in more dubious light, since top income shares remained quite stable since 2000 and the "tax-adjusted" Gini coefficient suggests a smaller and shorter, though still sizeable, decrease. I interpret the results in light of Brazil’s tumultuous political history and complement the analysis with international comparisons and a discussion of the role of institutions in shaping inequality.