The processes of global convergence and formation of convergence clubs of the social welfare index proposed by Sen (1974) are tested through a time series methodology proposed by Phillips and South (2007). The paper also measures the amount of resources necessary for states to achieve the social welfare indicator of the state of São Paulo. The results suggest that the income penalty alluded to by Sen is unable to prevent the formation of convergence clubs previously recorded for the Brazilian case and that, besides the welfare of the North-East is still relatively low compared to Mid-South states, this relative difference has been worsening over the years. About the amount of resources needed to eradicate regional disparities, despite the current cost to the welfare equalization among regions is extremely high, about 1/3 of GDP, this cost is still low compared to past values.
welfare convergence; SEN index; heterogeneity; public policy
