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Income distribution in the Latin American Southern Cone during the first globalization boom, ca: 1870-1920

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Author Info
Luis Bertola ()
Cecilia Castelnovo ()
Javier Rodriguez ()
Henry Willebald ()
Abstract

Latin America is the most unequal region in the world and there is a lively debate concerning the explanations and timing of such high levels of income inequality. Latin America was also the region, not including European Offshoots, which experienced the most rapid growth during the first globalization boom. It can, therefore, be taken as an interesting case study for how globalization forces impinged on growth and income distribution in peripheral regions. This paper presents a first estimate of income inequality in the Southern Cone of South America (Brazil 1872 and 1920, Chile 1870 and 1920, Uruguay 1920) and some assumptions concerning Argentina (1870 and 1920), and Uruguay (1870). We find an increasing inequality trend between 1870 and 1920 which can be explained as a process of inequality both within individual countries and between countries. This trend is discussed along three lines: the relation between inequality and per capita income levels; the dynamics of the expansion to new areas, and movements of relative factor prices and of the terms of trade.

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Paper provided by Universidad Carlos III, Departamento de Historia Económica e Instituciones in its series Working Papers in Economic History with number wp08-05.

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Date of creation: Apr 2008
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Handle: RePEc:cte:whrepe:wp08-05

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Keywords: Globalization; Growth; Income inequality; Latin American Southern Cone; Regional inequality; Terms of trade;

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Find related papers by JEL classification:
N36 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - Latin America; Caribbean
N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
N76 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Latin America; Caribbean
N96 - Economic History - - Regional and Urban History - - - Latin America; Caribbean
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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