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Poverty and Inequality in a Rapid Growth Economy: Chile 1990-96

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  • Dante Contreras

Abstract

Using parametric and non-parametric methods this article examines the evolution of poverty and inequality in Chile between 1990 and 1996. This period is interesting because of the rapid growth exhibited by the Chilean economy. Using the Datt-Ravallion decomposition economic growth accounts for over 85 per cent of poverty reduction. The evidence suggests that the sustained level of high inequality is not necessarily associated with a lower welfare level. By comparing the evolution of poverty and inequality over time, we observe a continuous decrease in poverty, while inequality remains stable. This pattern has left everyone (both poor and rich individuals) better off.

Suggested Citation

  • Dante Contreras, 2003. "Poverty and Inequality in a Rapid Growth Economy: Chile 1990-96," Journal of Development Studies, Taylor & Francis Journals, vol. 39(3), pages 181-200.
    • Handle: RePEc:taf:jdevst:v:39:y:2003:i:3:p:181-200
    DOI: 10.1080/00220380412331322871
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    Cited by:

    1. Vanessa Hartmann & Konstantin M. Wacker, 2023. "Poverty decompositions with counterfactual income and inequality dynamics," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1746-1768, August.
    2. Anríquez, Gustavo & Daidone, Silvio & Mane, Erdgin, 2013. "Rising food prices and undernourishment: A cross-country inquiry," Food Policy, Elsevier, vol. 38(C), pages 190-202.
    3. Agostini, Claudio A. & Brown, Philip H. & Roman, Andrei C., 2010. "Poverty and Inequality Among Ethnic Groups in Chile," World Development, Elsevier, vol. 38(7), pages 1036-1046, July.
    4. Ramón López & Gustavo Anríquez, 2004. "Poverty and Agricultural Growth: Chile in the 1990s," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(1), pages 6-24.
    5. Claudio A. Agostini, & Philip H. Brown, & Andrei Roman, 2008. "Estimating Poverty for Indigenous Groups in Chile by Matching Census and Survey Data," William Davidson Institute Working Papers Series wp932, William Davidson Institute at the University of Michigan.
    6. Claudio A. Agostini & Philip H. Brown, 2010. "Inequality at Low Levels of Aggregation in Chile," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 213-226, May.
    7. Kalwij, A.S. & Verschoor, A., 2004. "How Good is Growth for the Poor? The Role of Initial Income Distribution in Regional Diversity in Poverty Trends," Other publications TiSEM 199ed5a4-ad69-4cf9-81d7-b, Tilburg University, School of Economics and Management.
    8. Alkire, Sabina & Apablaza, Mauricio & Chakravarty, Satya & Yalonetzky, Gaston, 2017. "Measuring chronic multidimensional poverty," Journal of Policy Modeling, Elsevier, vol. 39(6), pages 983-1006.
    9. Federico Huneeus & Oscar Landerretche & Esteban Puentes, 2012. "Multidimensional Measure of Job Quality: Persistence and Heterogeneity in a Developing Country," Working Papers wp357, University of Chile, Department of Economics.
    10. Andrés Solimano & Gabriela Zapata-Román, 2019. "Structural transformations and the lack of inclusive growth: The case of Chile," WIDER Working Paper Series wp-2019-118, World Institute for Development Economic Research (UNU-WIDER).
    11. Gonzalez, Felipe & Prem, Mounu, 2021. "The Legacy of the Pinochet Regime," SocArXiv v5yjf, Center for Open Science.
    12. Ramírez, Eduardo & Ruben, Ruerd, 2015. "Gender Systems and Women’s Labor Force Participation in the Salmon Industry in Chiloé, Chile," World Development, Elsevier, vol. 73(C), pages 96-104.
    13. Sanchez, Rafael & Finot, Javier & Villena, Mauricio G., 2019. "Gender Wage Gap and Firm Market Power in Chile," MPRA Paper 99149, University Library of Munich, Germany, revised 01 Sep 2019.
    14. Claudio Agostini & Phillip Brown & Andrei Roman, 2008. "Poverty Estimating Poverty for Indigenous Groups by Matching Census and Survey Data," ILADES-UAH Working Papers inv207, Universidad Alberto Hurtado/School of Economics and Business.
    15. Adriaan Kalwij & Arjan Verschoor, 2005. "A Decomposition of Poverty Trends Across Regions: the Role of Variation in the Income and Inequality Elasticities of Poverty," WIDER Working Paper Series RP2005-36, World Institute for Development Economic Research (UNU-WIDER).
    16. Noreen Goldman & Anne Pebley & Mathew Creighton & Graciela Teruel & Luis Rubalcava & Chang Chung, 2014. "The Consequences of Migration to the United States for Short-Term Changes in the Health of Mexican Immigrants," Demography, Springer;Population Association of America (PAA), vol. 51(4), pages 1159-1173, August.
    17. Gabriela Zapata-Román, 2021. "The role of skills and tasks in changing employment trends and income inequality in Chile," WIDER Working Paper Series wp-2021-48, World Institute for Development Economic Research (UNU-WIDER).
    18. Bronfman, Javier & Floro, Maria, 2014. "How well has the Social Protection Scheme Reduced Vulnerability in Chile?," MPRA Paper 63255, University Library of Munich, Germany.
    19. Maria S. Floro & Javier Bronfman, 2012. "How Well have Social Protection Schemes in Chile Reduced Household Vulnerability?," Working Papers 2012-03, American University, Department of Economics.
    20. Hajamini, Mehdi, 2020. "Analyzing the Causal Relationships between Economic Growth, Income Inequality, and Transmission Channels: New Empirical Evidences from Iran," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 15(3), pages 313-342, July.
    21. Dusan Paredes, 2010. "Can NEG explains the spatial distribution of wages in developing countries? Evidence from Chile," Documentos de Trabajo en Economia y Ciencia Regional 02, Universidad Catolica del Norte, Chile, Department of Economics, revised Sep 2010.

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    Keywords

    poverty; inequality; education;
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