Inequality Trends and their Determinants: Latin America over 1990-2010
AbstractThe paper reviews the steady and widespread decline in income inequality which has taken place in most of Latin America over 2002-10 and which––if continued for another 2-3 years––would reduce the average regional income inequality to pre-liberalization levels. The paper then focuses on the factors, which may explain such inequality decline. A review of the literature and an econometric test indicate that a few complementary factors played an important role in this regard, including a drop in the skill premium following a rapid expansion of secondary education, and the adoption of a new development model by a growing number of left-of-centre governments which emphasizes fiscally-prudent but more equitable macroeconomic, tax, social expenditure and labour policies. For the region as a whole, improvements in terms of trade, migrant remittances, FDI and world growth played a less important role than expected although their impact was perceptible in countries where such transactions were sizeable.
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Bibliographic InfoPaper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa in its series Working Papers - Economics with number wp2012_02.rdf.
Length: 57 pages
Date of creation: 2012
Date of revision:
income inequality; human capital inequality; policy regimes; external conditions; Latin America;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-27 (All new papers)
- NEP-DEV-2012-02-27 (Development)
- NEP-LAB-2012-02-27 (Labour Economics)
- NEP-LAM-2012-02-27 (Central & South America)
- NEP-LTV-2012-02-27 (Unemployment, Inequality & Poverty)
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.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Inequality Trends and their Determinants: Latin America over 1990-2010
by Maximo Rossi in Wikiprogress América Latina on 2012-03-12 13:35:00
- Inequality Trends and their Determinants: Latin America over 1990-2010
by Maximo Rossi in Wikiprogress América Latina on 2012-03-05 17:43:00
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