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Determinants of inequality among urban households

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  • Ruedi, Nora
  • Jiménez, Luis Felipe

Abstract

This article summarizes the results of an analysis of the long-term factors affecting income distribution in five countries of the region (Argentina, Brazil, Chile, Colombia and Mexico);, on the basis of household surveys made in those countries between 1979 and 1992. After a brief introduction (section I);, the article describes the methodology applied (section II); and then details the main findings (section III);. These include in particular the lower labour remuneration received by the first income deciles, associated among other things with inequalities in the educational levels attained. It is also observed that those deciles have below-average employment rates and above-average rates of inactivity. This latter phenomenon appears to be connected with household composition: the first deciles register a relatively greater presence of minors in the household, so that the burden of looking after children is greater and the cost of participating in the labour market is higher, thus leading to lower participation in it and reducing income generation. The article concludes with some suggestions for a redistribution policy (section IV);. Such a policy should seek to advance simultaneously in at least four fields: generation of productive employment, improvement of the income of the poorest households, lowering of the barriers hindering such households' access to the labour market and, finally, aspects related with population dynamics.

Suggested Citation

  • Ruedi, Nora & Jiménez, Luis Felipe, 1998. "Determinants of inequality among urban households," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    • Handle: RePEc:ecr:col070:10666
    Note: Includes bibliography
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    1. -, 1992. "Social equity and changing production patterns: an integrated approach," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37866 edited by Eclac.
    2. Altimir, Oscar, 1994. "Income distribution and poverty through crisis and adjustment," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    3. -, 1997. "The equity gap: Latin America, the Caribbean and the Social Summit," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37854 edited by Eclac.
    4. José Antonio Ocampo G. & María J. Pérez & Camilo Tovar & Francisco Javier Lasso, 1998. "Macroeconomía, ajuste estructural y equidad en Colombia, 1978-1996," Coyuntura Social 13103, Fedesarrollo.
    5. -, 1992. "Social equity and changing production patterns: an integrated approach," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37866 edited by Eclac, March.
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    1. Cuadros, Jéssica & Jiménez, Luis Felipe, 2003. "Expanding the coverage of pension systems in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. Catalina Amuedo-Dorantes, 2005. "Work Contracts and Earnings Inequality: The Case of Chile," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 589-616.

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