A further step to understand income inequality in Chile: A decomposition using three-stages nested Theil index decomposition method
AbstractThe previous literature identifies the high and persistent income inequality of Chile, but the geography of this inequality is still unexplored. To evaluate this dimension, we propose a three-stage decomposition of the Theil index at regional, province and county level. Our decomposition indicates that between 1992 and 2009, 21% of the inequality is attributable to these spatial scales. Inside of them, the highest inequality exists between counties and between regions, although they follow different patterns. The inequality between-counties fell from 65% to 53%. Oppositely, inequality between regions was 21% in 1992, and grew to 35% in 2009.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Universidad Catolica del Norte, Chile, Department of Economics in its series Documentos de Trabajo en Economia y Ciencia Regional with number 25.
Length: 33 pages
Date of creation: Aug 2012
Date of revision: Aug 2012
Three stage nested Theil index; spatial income inequality;
Find related papers by JEL classification:
- C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
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.:
- Claudio Agostini & Phillip Brown, 2007. "Desigualdad geográfica en Chile," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 22(1), pages 3-33, June.
- Takahiro Akita, 2003. "Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method," The Annals of Regional Science, Springer, vol. 37(1), pages 55-77, 02.
- Josef Novotný, 2007. "On the measurement of regional inequality: does spatial dimension of income inequality matter?," The Annals of Regional Science, Springer, vol. 41(3), pages 563-580, September.
- Anthony Shorrocks & Guanghua Wan, 2005.
"Spatial decomposition of inequality,"
Journal of Economic Geography,
Oxford University Press, vol. 5(1), pages 59-81, January.
- Dante Contreras & Víctor Macías, 2002. "Desigualdad Educacional en Chile: Geografía y Dependencia," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 39(118), pages 395-421.
- Gustafsson, Bjorn & Shi, Li, 2002. "Income inequality within and across counties in rural China 1988 and 1995," Journal of Development Economics, Elsevier, vol. 69(1), pages 179-204, October.
- Dusan Paredes & Víctor Iturra, 2011.
"Substitution Bias and the Construction of a Spatial Cost of Living Index,"
Documentos de Trabajo en Economia y Ciencia Regional
13, Universidad Catolica del Norte, Chile, Department of Economics, revised May 2011.
- Dusan Paredes Araya & Victor Iturra Rivera, 2013. "Substitution bias and the construction of a spatial cost of living index," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 103-117, 03.
- Dusan Paredes, 2011. "A methodology to compute regional housing price index using matching estimator methods," The Annals of Regional Science, Springer, vol. 46(1), pages 139-157, February.
- Sergio J. Rey, 2001. "Spatial Analysis of Regional Income Inequality," Urban/Regional 0110002, EconWPA.
- Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2010.
"The Identification of Agglomeration Economies,"
CEPR Discussion Papers
8119, C.E.P.R. Discussion Papers.
- Pierre-Philippe COMBES & Gilles DURANTON & Laurent GOBILLON, 2010. "The Identification of Agglomeration Economies," Working Papers 2010-52, Centre de Recherche en Economie et Statistique.
- Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon, 2010. "The Identification of Agglomeration Economies," Working Papers halshs-00535593, HAL.
- X. Zhang & R. Kanbur, 2001.
"What Difference Do Polarisation Measures Make? An Application to China,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 37(3), pages 85-98.
- Zhang, Siao-Bo & Kanbur, Ravi, 1999. "What Difference Do Polarization Measures Make? An Application To China," Working Papers 7224, Cornell University, Department of Applied Economics and Management.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dusan Paredes).
If references are entirely missing, you can add them using this form.