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Spatial Inequality, Migration and Economic Growth in Chile

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Author Info
Raimundo Soto () (Instituto de Economía. Pontificia Universidad Católica de Chile.)
Arístides Torche () (Instituto de Economía. Pontificia Universidad Católica de Chile.)

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Abstract

Between 1975 and 2000, annual per-capita GDP in Chile grew at 5%. Yet, regions did not benefit equally: poverty declined significantly in all regions but regional income inequality remained stagnant. We found that convergence in per-capita income and productivity levels is too slow to become a significant force in equalizing regional income. Lack of convergence is mostly associated with low levels of internal migration. This, in turn, is found to be largely the result of government policies, in particular, public housing. The efficient targeting of subsidies coupled with the prohibition to sell houses, tied families to their geographical location, inhibiting migration.

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Publisher Info
Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía.

Volume (Year): 41 (2004)
Issue (Month): 124 ()
Pages: 401-424
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Handle: RePEc:ioe:cuadec:v:41:y:2004:i:124:p:401-424

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Related research
Keywords: Migration; Economic Growth; Convergence; Regional Analysis;

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Find related papers by JEL classification:
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December. [Downloadable!] (restricted)
  3. Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," CEPR Discussion Papers 1945, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Robert E. Lucas, Jr., 2001. "Externalities and Cities," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 245-274, April. [Downloadable!] (restricted)
  5. Francisco Gallego Y. & Norman Loayza O., 2002. "The Golden Period For Growth In Chile: Explanations And Forecasts," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(1), pages 37-67. [Downloadable!]
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  6. Yuri Andrienko & Sergei Guriev, 2003. "Determinants of interregional mobility in Russia: evidence from panel data," Working Papers w0027, Center for Economic and Financial Research (CEFIR). [Downloadable!]
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  7. Wright, Peter & Joanne Lindley & Richard Upward, 2003. "Regional mobility and unemployment transitions in the UK and Spain," Royal Economic Society Annual Conference 2003 223, Royal Economic Society. [Downloadable!]
  8. Juan Eduardo Coeymans, 1983. "Determinantes de la Migración Rural-Urbana en Chile, Según Origen y Destino," Cuadernos de Economía (Latin American Journal of Economics), Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 20(59), pages 43-64. [Downloadable!]
  9. Canova, Fabio & Marcet, Albert, 1995. "The Poor Stay Poor: Non-Convergence Across Countries and Regions," CEPR Discussion Papers 1265, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  10. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
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  11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Andrés Solimano & Arístides Torche, 2008. "Income Distribution In Chile, 1987-2006: Analysis And Policy Considerations," Working Papers Central Bank of Chile 480, Central Bank of Chile. [Downloadable!]
  2. Maria Isabel Serra & Maria Fernanda Pazmino & Genevieve Lindow & Gustavo Ramirez & Bennett Sutton, 2006. "Regional Convergence in Latin America," IMF Working Papers 06/125, International Monetary Fund. [Downloadable!]
  3. Ravi Kanbur, 2005. "Spatial Inequality and Development: Overview of UNU-WIDER Project," Working Papers id:215, esocialsciences.com. [Downloadable!]
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