Cíntia da Silva Arruda

The objective of this paper is to verify if economic growth, increase in the stock of human capital are contributing to the poverty reduction in Brazilian States. The panel data model estimates do consider the dynamics and the specific conditions of each state over time. Another important aspect considered was the causality among the variables. As main result, the states economic growth has not contributed to poverty reduction over time. However, poverty alleviation has come from human capital investment, particularly increase in average schooling of population. In sum education policies that incentive human capital accumulation by youth and children are more effective on poverty alleviation in Brazilian States.