Inequality and Poverty under Latin America's New Left Regimes
AbstractInequality and poverty fell sharply in many Latin American countries during a decade in which voters in ten countries chose left-leaning leaders. Are these developments related? Using data for 18 Latin American countries, this paper presents econometric evidence that social democratic regimes in Brazil and Chile were more successful at reducing inequality and poverty than the so-called populist regimes of Argentina, Bolivia, and Venezuela. Both groups implemented policies to redistribute income, but the social democratic regimes' efforts were more effective. Argentina and Venezuela started the 1990-2008 sample window with lower levels of inequality, so to some extent recent reductions in inequality are a return to "normal" levels (as estimated by fixed effects). Conversely, inequality and poverty in Brazil and Chile fell to historic lows. Second, overall terms of trade shocks were more favorable to Argentina and Venezuela, so part of the drop in inequality can be attributed to commodity price booms.
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Bibliographic InfoPaper provided by Tulane University, Department of Economics in its series Working Papers with number 1117.
Length: 31 pages
Date of creation: Apr 2011
Date of revision:
inequality; poverty; social policy; new left; Latin America;
Other versions of this item:
- Darryl McLeod & Nora Lustig, 2010. "Inequality and Poverty under Latin America's New Left Regimes," Fordham Economics Discussion Paper Series dp2010-13, Fordham University, Department of Economics.
- Darryl McLeod & Nora Lustig, 2011. "Inequality and poverty under Latin America’s new left regimes," Working Papers 208, ECINEQ, Society for the Study of Economic Inequality.
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
- 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-2011-04-23 (All new papers)
- NEP-LAM-2011-04-23 (Central & South America)
- NEP-LTV-2011-04-23 (Unemployment, Inequality & Poverty)
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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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Inequality and Poverty under Latin Americaâs New Left Regimes
by maximorossi in NEP-LTV blog on 2011-02-21 12:20:36
- Nancy Birdsall & Nora Lustig & Darryl McLeod, 2011.
"Declining inequality in Latin America: Some economics, some politics,"
201, ECINEQ, Society for the Study of Economic Inequality.
- Nancy Birdsall & Nora Lustig & Darryl McLeod, 2011. "Declining Inequality in Latin America: Some Economics, Some Politics," Working Papers 1120, Tulane University, Department of Economics.
- Nora Lustig in Wikipedia (English)
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