Advanced Search
MyIDEAS: Login to save this paper or follow this series

Does Inequality Harm Income Mobility and Growth? An Assessment of the Growth Impact of Income and Education Inequality in Paraguay 1992-2002

Contents:

Author Info

  • Thomas Otter

    ()

Registered author(s):

    Abstract

    Latin America is the most unequal region of the world in terms of income or expenditure, as well as regarding other aspects of economic or social exclusion. The region suffered the lost decade of the nineteen eighties, and experienced a modest recovery in the nineteen nineties. In the nineteen nineties, most of the governments implemented stabilization politics, more or less close to the proposals of the Washington Consensus. Paraguay itself, however, neither suffered a debt crisis nor a mayor economic instability during the eighties, so the stabilization policies would not have been necessary or useful for the Paraguayan economy and business cycles in the nineties. Nevertheless, many of the macroeconomic policies applied in Paraguay during the nineties were close to the Washington Consensus. The most striking macroeconomic result of the decade was a per capita income decrease beginning in late 1995, hand in hand with a poverty increase after 1996. Given the persistently high levels of poverty incidence in Paraguay to date, understanding the determinants of growth at the household level in Paraguayan economy remains an important but under-researched field in economics. This appears to be particularly true for the question whether inequality has a positive or negative effect on economic growth, a question that is both fundamental in (development) economics and highly relevant for poverty reduction policies. Although the effect of inequality on growth has important implications for poverty (Bourguignon, 2004; Ravallion, 1997), empirical evidence on this link is virtually inexistent for Paraguay.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://wwwuser.gwdg.de/~fjohann/paper/DB188.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 188.

    as in new window
    Length: 45 pages
    Date of creation: 05 May 2009
    Date of revision:
    Handle: RePEc:got:iaidps:188

    Contact details of provider:
    Postal: Platz des Göttinger Sieben 3, 37073 Göttingen
    Phone: 0049-551-39 81 72
    Fax: 0049-551-39 81 73
    Email:
    Web page: http://www.iai.wiwi.uni-goettingen.de
    More information through EDIRC

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Aghion, Philippe & Caroli, Eve & García-Peñalosa, Cecilia, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Scholarly Articles 12502063, Harvard University Department of Economics.
    2. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2005. "Imputed welfare estimates in regression analysis," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 101-118, January.
    3. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implications for Growth," NBER Working Papers 3530, National Bureau of Economic Research, Inc.
    4. Hassler, John & Mora , José V. Rodríguez, 1998. "IQ, Social Mobility and Growth," Seminar Papers 635, Stockholm University, Institute for International Economic Studies.
    5. Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Policy Research Working Paper Series 1775, The World Bank.
    6. Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, 04.
    7. repec:chb:bcchwp:03 is not listed on IDEAS
    8. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
    9. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
    10. Ravallion, Martin, 1998. "Does aggregation hide the harmful effects of inequality on growth?," Economics Letters, Elsevier, vol. 61(1), pages 73-77, October.
    11. Balisacan, Arsenio M. & Fuwa, Nobuhiko, 2003. "Growth, inequality and politics revisited: a developing-country case," Economics Letters, Elsevier, vol. 79(1), pages 53-58, April.
    12. Galor, Oded, 2000. "Income distribution and the process of development," European Economic Review, Elsevier, vol. 44(4-6), pages 706-712, May.
    13. Joel Slemrod, 1992. "Taxation and Inequality: A Time-Exposure Perspective," NBER Working Papers 3999, National Bureau of Economic Research, Inc.
    14. Markus Jantti & Stephen P. Jenkins, 2014. "Income Mobility," Working Papers 319, ECINEQ, Society for the Study of Economic Inequality.
    15. Birdsall, Nancy & Londono, Juan Luis, 1997. "Asset Inequality Matters: An Assessment of the World Bank's Approach to Poverty Reduction," American Economic Review, American Economic Association, vol. 87(2), pages 32-37, May.
    16. Hentschel, Jesko, et al, 2000. "Combining Census and Survey Data to Trace the Spatial Dimensions of Poverty: A Case Study of Ecuador," World Bank Economic Review, World Bank Group, vol. 14(1), pages 147-65, January.
    17. Andersen, Lykke Eg, 2000. "Social Mobility in Latin America," Documentos de trabajo 3/2000, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    18. Andrea Brandolini & Anthony B. Atkinson, 2001. "Promise and Pitfalls in the Use of "Secondary" Data-Sets: Income Inequality in OECD Countries As a Case Study," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 771-799, September.
    19. repec:ese:iserwp:2013-23 is not listed on IDEAS
    20. Chris Elbers & Jan Willem Gunning, 2004. "Transitional Growth and Income Inequality: Anything Goes," GE, Growth, Math methods 0409001, EconWPA, revised 08 Sep 2004.
    21. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
    22. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. " Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-89, September.
    23. Lakshmi K. Raut, 1996. "Signalling equilibrium, Intergenerational mobility and long-run growth," GE, Growth, Math methods 9603002, EconWPA.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:got:iaidps:188. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Jaep).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.