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Argentina´s Distributional Failure: The role of Integration and Public Policies

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  • Leonardo Gasparini

    ()
    (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) FCE - UNLP)

Abstract

This paper documents the income distribution changes experienced by Argentina during the last decades. Inequality substantially increased, and despite economic growth during some periods, poverty also went significantly up. Two types of episodes have shaped Argentina’s income distribution: deep macroeconomic crisis and periods of openness and integration. The sizeable raise in inequality in the 90s seems to be associated to reallocations against unskilled-labor intensive sectors, and especially to skilled-biased technological change within most sectors, both factors stimulated by the process of economic integration. The depth and speed of the reforms and the absence of public policies to ease the transition contributed to the particular severity of the income distribution changes in Argentina.

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File URL: http://cedlas.econo.unlp.edu.ar/archivos_upload/doc_cedlas1.pdf
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Bibliographic Info

Paper provided by CEDLAS, Universidad Nacional de La Plata in its series CEDLAS, Working Papers with number 0001.

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Length: 46 pages
Date of creation: Sep 2003
Date of revision:
Publication status: Published in Gustavo Márquez (ed.) (2005). Debate sobre el Impacto de la Globalización en los mercados de trabajo de América Latina. Inter-American Development Bank. Capítulo 1. (Spanish version)
Handle: RePEc:dls:wpaper:0001

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Related research

Keywords: inequality; distribution; globalization; integration; wages; education; Argentina;

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  1. Stanley Fischer, 2003. "Globalization and Its Challenges," American Economic Review, American Economic Association, vol. 93(2), pages 1-30, May.
  2. Sanchez-Paramo, Carolina & Schady, Norbert, 2003. "Off and running? Technology, trade and the rising demand for skilled workers in Latin America," Policy Research Working Paper Series 3015, The World Bank.
  3. Branko Milanovic, 2003. "The Two Faces Of Globalization: Against Globalization As We Know It," Development and Comp Systems 0303007, EconWPA.
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  5. Galiani, Sebastian & Sanguinetti, Pablo, 2003. "The impact of trade liberalization on wage inequality: evidence from Argentina," Journal of Development Economics, Elsevier, vol. 72(2), pages 497-513, December.
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  8. Atkinson, A-B, 1996. "Bringing Income Distribution in from the Cold," Economics Papers 117, Economics Group, Nuffield College, University of Oxford.
  9. Miguel Braun & Luciano di Gresia, 2004. "Towards Effective Social Insurance in Latin America: The Importance of Countercyclical Fiscal Policy," Public Economics 0410001, EconWPA.
  10. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
  11. Leonardo Gasparini & Pablo Acosta, 2004. "Capital Accumulation, Trade Liberalization and Rising Wage Inequality: The Case of Argentina," CEDLAS, Working Papers 0005, CEDLAS, Universidad Nacional de La Plata.
  12. Leonardo Gasparini & Mariana Marchionni & Walter Sosa Escudero, 2000. "Characterization of inequality changes through microeconometric decompositions. The case of Greater Buenos Aires," Department of Economics, Working Papers 025, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
  13. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
  14. Jere R. Behrman & Nancy Birdsall & Miguel Székely, 2003. "Economic Policy and Wage Differentials in Latin America," Working Papers 29, Center for Global Development.
  15. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
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  17. Wood, Adrian, 1995. "North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World," OUP Catalogue, Oxford University Press, number 9780198290155, September.
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Cited by:
  1. Matías Horenstein & Sergio Olivieri, 2004. "Polarización del Ingreso en la Argentina: Teoría y Aplicación de la Polarización Pura del Ingreso," CEDLAS, Working Papers 0015, CEDLAS, Universidad Nacional de La Plata.
  2. Heinrich, Carolyn J., 2007. "Demand and Supply-Side Determinants of Conditional Cash Transfer Program Effectiveness," World Development, Elsevier, vol. 35(1), pages 121-143, January.

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