From a methodological point of view, this paper makes two contributions to the literature. One contribution is the proposal of a new measure of pro-poor growth. This new measure provides the linkage between growth rates in mean income and in income inequality. In this context, growth is defined as propoor (or anti-poor) if there is a gain (or loss) in the growth rate due to a decrease (or increase) in inequality. The other contribution is a decomposition methodology that explores linkages between growth patterns and social policies.

This paper analyses the effect of income policies on income distribution in Brazil, its nearterm impacts and potential long-term effects through the distribution of opportunities. It demonstrates the impact of electoral cycles motivating the expansion of monetary transfers. It evaluates the targeting efficiency of the principal income policies in terms of the fiscal costs versus short-term benefits to social welfare. We take advantage of the recent expansion of these benefits to test how this affected the distribution of opportunities.