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Factors influencing income inequality across urban Argentina (1998-2003)

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María Emma Santos (Vanderbilt University, Nashville)
Abstract

This paper tries to disentangle the most relevant determinants of spatial inequality in the urban areas of Argentina. The analysis is restricted to the period 1998-2003. The study is performed with a Panel Data approach using a random effects model. Results suggest that human capital, measured by rates of education completion, is an important contributor to spatial inequality. High rates of primary education appear to reduce inequality while higher rates of secondary education appear to increase it. Labor market characteristics also play a role: urban areas with higher unemployment rates, higher returns to education and a lower percentage of people employed in the secondary sector tend to have higher levels of inequality. Also, dependency and the percentage of people with unsatisfied basic needs have increasing-inequality effects. Finally, there seems to be a relationship between inequality and the level of development, though not with a clear inverted-U pattern as hypothesized by Kuznets. Results are robust to different measures of inequality and different income specifications.

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Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 126.

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Length: 30 pages
Date of creation: 08 Nov 2005
Date of revision:
Handle: RePEc:got:iaidps:126

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Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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  1. Nord, Stephen, 1982. "Urban Income Distribution and the Urban Hierarchy-Equality Hypothesis: A Comment," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 537-40, August. [Downloadable!] (restricted)
  2. Shorrocks, Anthony F & Foster, James E, 1987. "Transfer Sensitive Inequality Measures," Review of Economic Studies, Blackwell Publishing, vol. 54(3), pages 485-97, July. [Downloadable!] (restricted)
  3. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April. [Downloadable!] (restricted)
  4. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January. [Downloadable!] (restricted)
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  5. Long, James E & Rasmussen, David W & Haworth, Charles T, 1977. "Income Inequality and City Size," The Review of Economics and Statistics, MIT Press, vol. 59(2), pages 244-46, May. [Downloadable!] (restricted)
  6. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, vol. 3(4), pages 307-342, December. [Downloadable!] (restricted)
  7. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February. [Downloadable!] (restricted)
  8. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287. [Downloadable!] (restricted)
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This page was last updated on 2009-11-21.

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