Declining inequality in Bolivia: How and Why
AbstractLatin America has often been depicted as one of the most unequal regions in the world. However, after the rising of inequality, the figure decline dramatically starting from the year 2000. In this setting, Bolivia has been one of the poorest performers on income distribution efforts, lately, this situation has been improving. The author investigates the dynamics of this change through an analysis of household level surveys for 4 different years (2003/04, 2005, 2008 and 2009). The research applies a method of inequality decomposition– as developed by (Fields, 2003)-, this technique consists on regressing the expenditure of households against a vector of explanatory variables. The results suggest that education (more than other variables) has contributed on the reduction of inequality in Bolivia. Moreover, the sources of inequality are mainly attributed to the differences on human capital accumulation more than any other variables, such as the gender of the household head or the ethnical origin of the household. The results are in line with similar work made by other authors on the same issue (Gray-Molina, et al., 2001; Gray Molina &Yañez, 2009)
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41208.
Date of creation: Jul 2012
Date of revision:
Economic Development; Inequality; Income Distribution; Bolivia;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-22 (All new papers)
- NEP-HME-2012-09-22 (Heterodox Microeconomics)
- NEP-LAM-2012-09-22 (Central & South America)
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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