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Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions

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Author Info
Florencia Lopez Boo () (Department of Economics, University of Oxford)

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Abstract

From 1992 to 2001, despite its rapid economic growth during the early 1990s, Argentina experienced a period characterized by increasing income inequality and poverty. An axiomatically modified Datt-Ravallion decomposition, that separates changes in poverty rates into mean and inequality components, will illustrate how each of them has contributed to those changes. Contrary to the claims of much of the recent cross-country literature, income inequality does not appear stable in Argentina. Previous results are extended in two key ways. First, the empirical density function is used to calculate the inequality component, without assuming a particular functional form for the Lorenz curve. Second, both components are recomputed without the vaguely defined Datt-Ravallion residual, which improves interpretability.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2006-33.pdf
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File Function: First version, 2006
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 33.

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Length: 35 pages
Date of creation: 2006
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Handle: RePEc:inq:inqwps:ecineq2006-33

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Related research
Keywords: decomposition of changes in poverty; poverty measures; inequality and growth.;

Find related papers by JEL classification:
C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Econometric and Statistical Methods; Specific Distributions
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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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.:
  1. Florencia Lopez Boo, 2006. "Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions," Working Papers 33, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
  2. Stanislav Kolenikov & Anthony Shorrocks, 2005. "A Decomposition Analysis of Regional Poverty in Russia," Review of Development Economics, Blackwell Publishing, vol. 9(1), pages 25-46, 02. [Downloadable!] (restricted)
    Other versions:
  3. Kakwani, Nanak, 1980. "Functional Forms for Estimating the Lorenz Curve: A Reply," Econometrica, Econometric Society, vol. 48(4), pages 1063-64, May. [Downloadable!] (restricted)
  4. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September. [Downloadable!] (restricted)
    Other versions:
  5. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September. [Downloadable!] (restricted)
  6. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July. [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)
  9. Dasgupta, Partha & Ray, Debraj, 1987. "Inequality as a Determinant of Malnutrition and Unemployment: Policy," Economic Journal, Royal Economic Society, vol. 97(385), pages 177-88, March. [Downloadable!] (restricted)
  10. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January. [Downloadable!] (restricted)
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  1. Florencia Lopez Boo, 2006. "Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions," Working Papers 33, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
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