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POVERTY AND INCOME INEQUALITY IN LATIN AMERICA DURING THE 1980s

Author

Listed:
  • George Psacharopoulos
  • Samuel Morley
  • Ariel Fiszbein
  • Haeduck Lee
  • William C. Wood

Abstract

On average, poverty and income inequality increased in Latin America during the 1980s. Forty‐six percent of the increase in poverty took place in the cities of Brazil alone, though part of this reflects the migration of poor rural inhabitants to urban areas. There is strong evidence that both income inequality and poverty mirrored the economic cycle, rising during recession and falling during recovery. Economies that grew (e.g. Colombia, Costa Rica) performed better with respect to poverty and income inequality than those that stagnated. In particular, countries that failed to stabilize effectively (e.g. Brazil, Peru) experienced substantial increases in poverty. Educational attainment has the greatest correlation with both income inequality and the probability of being poor. From a policy standpoint, there is a clear association between the provision of education, lessening of income inequality, and poverty reduction.

Suggested Citation

  • George Psacharopoulos & Samuel Morley & Ariel Fiszbein & Haeduck Lee & William C. Wood, 1995. "POVERTY AND INCOME INEQUALITY IN LATIN AMERICA DURING THE 1980s," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 41(3), pages 245-264, September.
    • Handle: RePEc:bla:revinw:v:41:y:1995:i:3:p:245-264
    DOI: 10.1111/j.1475-4991.1995.tb00119.x
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    Cited by:

    1. Ivan Gachet & Diego F. Grijalva & Paúl A. Ponce & Damián Rodríguez, 2019. "Vertical and Horizontal Inequality in Ecuador: The Lack of Sustainability," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 861-900, October.
    2. Peng Jia & Yang Du & Meiyan Wang, 2017. "Rural Labor Migration and Poverty Reduction in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 25(6), pages 45-64, November.
    3. Baer, Werner & Maloney, William, 1997. "Neoliberalism and income distribution in Latin America," World Development, Elsevier, vol. 25(3), pages 311-327, March.
    4. Manuel Fernández & Gabriela Serrano, 2022. "New Perspectives on Inequality in Latin America," Documentos CEDE 20295, Universidad de los Andes, Facultad de Economía, CEDE.
    5. Roy Cerqueti & Marcel Ausloos, 2015. "Statistical assessment of regional wealth inequalities: the Italian case," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2307-2323, November.
    6. Narayan Sastry, 2002. "Trends in Socioeconomic Inequalities in Under-Five Mortality Evidence from Sao Paulo, Brazil, 1970-1991," Working Papers DRU-2934-NICHD, RAND Corporation.
    7. Jaideep Oberoi & Syed Ahsan, 2003. "Inequality, Well-being and Institutions in Latin America and the Caribbean," CESifo Working Paper Series 846, CESifo.
    8. Manoel Bittencourt, 2014. "Economic Growth and Inequality: Evidence from the Young Democracies of South America," International Symposia in Economic Theory and Econometrics, in: Macroeconomic Analysis and International Finance, volume 23, pages 37-58, Emerald Group Publishing Limited.
    9. Orlando J. Sotomayor, 2004. "Education and Changes in Brazilian Wage Inequality, 1976–2001," ILR Review, Cornell University, ILR School, vol. 58(1), pages 94-111, October.
    10. Roy Cerqueti & Marcel Ausloos, 2014. "Assessing the Inequalities of Wealth in Regions: the Italian Case," Papers 1410.4922, arXiv.org.
    11. Narayan Sastry, 2002. "Trends in Socioeconomic Inequalities in Under-Five Mortality: Evidence from Sao Paulo, Brazil, 1970-1991," Working Papers 02-15, RAND Corporation.
    12. Vachaspati Shukla & Udaya S. Mishra, 2020. "Expansion in Education and Its Impact on Income Inequality: Cross-sectional Evidence from India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 331-362, June.
    13. Francisco Henríquez & Alejandra Mizala & Andrea Repetto, 2009. "Effective Schools for Low Income Children: a Study of Chile’s Sociedad de Instrucción Primaria," Documentos de Trabajo 258, Centro de Economía Aplicada, Universidad de Chile.
    14. Richardson Kojo Edeme & Evelyn Osaretin Ogbeide & A. Ifelunini Innocent & Sam Ugwu, 2017. "Exam nat on of the Dynam c Relationship Between Poverty and Inequal ty: Ev dence from N ger a M cro Data," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 518-523.
    15. Ivan Gachet & Diego F. Grijalva & Paúl A. Ponce & Damián Rodríguez, 2019. "Vertical and Horizontal Inequality in Ecuador: The Lack of Sustainability," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 861-900, October.
    16. Narayan Sastry, 2004. "Trends in socioeconomic inequalities in mortality in developing countries: The case of child Survival in São Paulo, Brazil," Demography, Springer;Population Association of America (PAA), vol. 41(3), pages 443-464, August.
    17. Morley, Samuel A., 2001. "Distribution and growth in Latin America in an era of structural reform," TMD discussion papers 66, International Food Policy Research Institute (IFPRI).
    18. Vachaspati Shukla & Udaya S. Mishra, 0. "Expansion in Education and Its Impact on Income Inequality: Cross-sectional Evidence from India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 0, pages 1-32.
    19. David E. Sahn & Stephen D. Younger, 2006. "Changes in inequality and poverty in Latin America: Looking beyond income to health and education," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 215-234, November.
    20. Molefi Solomon Mohautse, 2014. "The Economic and Political Ramifications of Inequality in Post-Apartheid South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 6(9), pages 690-699.
    21. de Janvry, Alain & Sadoulet, Elisabeth, 1996. "Growth, Inequality, And Poverty In Latin America: A Causal Analysis, 1970-94," CUDARE Working Papers 25097, University of California, Berkeley, Department of Agricultural and Resource Economics.

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