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Declining Inequality in Latin America in the 2000s: The Cases of Argentina, Brazil, and Mexico

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  • Nora Lustig, Luis F. Lopez-Calva, Eduardo Ortiz-Juarez

Abstract

Between 2000 and 2010, the Gini coefficient declined in 13 of 17 Latin American countries. The decline was statistically significant and robust to changes in the time interval, inequality measures, and data sources. In-depth country studies for Argentina, Brazil, and Mexico suggest two main phenomena underlie this trend: a fall in the premium to skilled labor and more progressive government transfers. The fall in the premium to skills resulted from a combination of supply, demand, and institutional factors. Their relative importance depends on the country

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Bibliographic Info

Paper provided by Center for Global Development in its series Working Papers with number 307.

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Length: 32 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:cgd:wpaper:307

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Keywords: income inequality; skill premium; government;

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References

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Citations

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Cited by:
  1. Nora Lustig & Luis F. Lopez-Calva & Eduardo Ortiz-Juarez, 2013. "Deconstructing the Decline in Inequality in Latin America," Working Papers, Tulane University, Department of Economics 1314, Tulane University, Department of Economics.
  2. Luis, Beccaria & Roxana, Maurizio & Vazquez, Gustavo, 2014. "Recent changes in wage inequality in Argentina. The role of labor formalization and other factors," MPRA Paper 56701, University Library of Munich, Germany.
  3. Nancy Birdsall and Christian J. Meyer, 2014. "The Median Is the Message: A Good-Enough Measure of Material Well-Being and Shared Development Progress," Working Papers, Center for Global Development 351, Center for Global Development.
  4. Bussolo, Maurizio & Maliszewska, Maryla & Murard, Elie, 2014. "The long-awaited rise of the middle class in Latin America is finally happening," Policy Research Working Paper Series 6912, The World Bank.
  5. Peter Paz & Carlos Urrutia, 2014. "Economic Growth and Wage Stagnation in Peru: 1998-2012," Working Papers 2014-5, Peruvian Economic Association.
  6. Sean Higgins, Nora Lustig, Whitney Ruble, and Timothy Smeeding, 2014. "Comparing the Incidence of Taxes and Social Spending in Brazil and the United States - Working Paper 360," Working Papers, Center for Global Development 360, Center for Global Development.
  7. Nora Lustig, 2013. "Book Review of Poverty, Inequality and Policy in Latin America," Journal of Economic Inequality, Springer, vol. 11(3), pages 417-420, September.
  8. Peter Edward & Andy Sumner, 2013. "Inequality from a global perspective: An alternative approach," Working Papers 302, ECINEQ, Society for the Study of Economic Inequality.
  9. Enamorado, Ted & Lopez-Calva , Luis-Felipe & Rodriguez-Castelan, Carlos & Winkler, Hernan, 2014. "Income inequality and violent crime : evidence from Mexico's drug war," Policy Research Working Paper Series 6935, The World Bank.
  10. Santiago Levy & Norbert Schady, 2013. "Latin America's Social Policy Challenge: Education, Social Insurance, Redistribution," Journal of Economic Perspectives, American Economic Association, vol. 27(2), pages 193-218, Spring.
  11. Sean Higgins & Nora Lustig & Whitney Ruble & Timothy Smeeding, 2013. "Comparing the Incidence of Taxes and Social Spending in Brazil and the United States," Working Papers, Tulane University, Department of Economics 1317, Tulane University, Department of Economics.
  12. Peter Edward & Andy Sumner, 2014. "The Poor, the Prosperous and the ?Inbetweeners?: A Fresh Perspective on Global Society, Inequality and Growth," Working Papers 122, International Policy Centre for Inclusive Growth.
  13. Nora Lustig & Carola Pessino & John Scott, 2013. "The Impact of Taxes and Social Spending on Inequality and Poverty in Argentina, Bolivia, Brazil, Mexico, Peru and Uruguay: An Overview," Working Papers, Tulane University, Department of Economics 1313, Tulane University, Department of Economics.
  14. Richard M. Bird & Eric M. Zolt, 2013. "Taxation and Inequality in the Americas: Changing the Fiscal Contract?," International Center for Public Policy Working Paper Series, at AYSPS, GSU, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University paper1322, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  15. Peter Edward, Andy Sumner, 2013. "The Geography of Inequality: Where and by How Much Has Income Distribution Changed since 1990?-Working Paper 341," Working Papers, Center for Global Development 341, Center for Global Development.
  16. Carrera Troyano, Miguel & Muñoz de Bustillo, Rafael, 2013. "Tres décadas de economía, ideología económica y políticas en la evolución de la pobreza y la desigualdad en América Latina
    [Three decades of economics, economic ideology and policies in the evoluti
    ," MPRA Paper 51867, University Library of Munich, Germany, revised 2013.

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