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Spatial Inequality in Chile

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  • Claudio Agostini

    ()
    (ILADES-Georgetown University, Universidad Alberto Hurtado)

  • Phillip Brown

    ()
    (Colby College, Waterville, Maine, United States and International Food Policy Research Institute, Washington, D.C., United States.)

Abstract

Despite success in reducing poverty over the last twenty years, inequality in Chile has remained virtually unchanged, making Chile one of the least equal countries in the world. High levels of inequality have been shown to hamper further reductions in poverty as well as economic growth and local inequality has been shown to affect Duch outcomes as violence and health. The study of inequality at the local level is thus crucial for understanding the economic well-being of a country. Local measures of inequality have been difficult to obtain, but recent theoretical advances have enabled the combination of survey and census data to obtain estimators of inequality that are robust at disaggregated geographic levels. In this paper, we employ this methodology to produce consistent estimators of inequality for every county in Chile. We find a great deal of variation in inequality, with county-level Gini coefficients ranging from 0.41 to 0.63.

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Bibliographic Info

Paper provided by Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines in its series ILADES-Georgetown University Working Papers with number inv178.

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Length: 25 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:ila:ilades:inv178

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Keywords: Inequality; poverty mapping; Chile;

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References

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  1. Georgina Pizzolitto, 2005. "Poverty and Inequality in Chile: Methodological Issues and a Literature Review," CEDLAS, Working Papers 0020, CEDLAS, Universidad Nacional de La Plata.
  2. Rodrik, Dani & Alesina, Alberto, 1994. "Distributive Politics and Economic Growth," Scholarly Articles 4551798, Harvard University Department of Economics.
  3. Demombynes, Gabriel & Elbers, Chris & Lanjouw, Jenny & Lanjouw, Peter & Mistiaen, Johan & Ozler, Berk, 2002. "Producing an Improved Geographic Profile of Poverty: Methodology and Evidence from Three Developing Countries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Elbers, Chris & Fujii, Tomoki & Lanjouw, Peter & Ozler, Berk & Yin, Wesley, 2007. "Poverty alleviation through geographic targeting: How much does disaggregation help?," Journal of Development Economics, Elsevier, vol. 83(1), pages 198-213, May.
  5. Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Economics Letters, Elsevier, vol. 56(1), pages 51-57, September.
  6. Pranab Bardhan and and Dilip Mookherjee., 1999. "Relative Capture of Local and Central Governments: An Essay in the Political Economy of Decentralization," Center for International and Development Economics Research (CIDER) Working Papers C99-109, University of California at Berkeley.
  7. Alberto Alesina & Ignazio Angeloni & Federico Etro, 2001. "The Political Economy of International Unions," NBER Working Papers 8645, National Bureau of Economic Research, Inc.
  8. Persson, T. & Tabellini, G., 1993. "Is Inequality Harmful for Growth," Papers 537, Stockholm - International Economic Studies.
  9. Demombynes, Gabriel & Ozler, Berk, 2005. "Crime and local inequality in South Africa," Journal of Development Economics, Elsevier, vol. 76(2), pages 265-292, April.
  10. 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.
  11. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
  12. Aghion, Philippe & Bolton, Patrick, 1997. "A Theory of Trickle-Down Growth and Development," Review of Economic Studies, Wiley Blackwell, vol. 64(2), pages 151-72, April.
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Cited by:
  1. Graw, Valerie & Husmann, Christine Ladenburger, 2012. "Mapping Marginality Hotspots – Geographical Targeting for Poverty Reduction," Working Papers 147917, University of Bonn, Center for Development Research (ZEF).

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