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Recent trends in Spanish Income Distribution: A Robust Picture of Falling Income Inequality

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Author Info

  • Josep Oliver Alonso

    ()
    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

  • Xavier Ramos

    ()
    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

  • José Luis Raymond-Bara

    ()
    (Departament d’Economia i Història Econòmica, Universitat Autonoma de Barcelona)

Abstract

Income distribution in Spain has experienced a substantial improvement towards equalisation during the second half of the seventies and the eighties; a period during which most OECD countries experienced the opposite trend. In spite of the many recent papers on the Spanish income distribution, the period covered by those stops in 1990. The aim of this paper is to extent the analysis to 1996 employing the same methodology and the same data set (ECPF). Our results not only corroborate the (decreasing inequality) trend found by others during the second half of the eighties, but also suggest that this trend extends over the first half of the nineties. We also show that our main conclusions are robust to changes in the equivalence scale, to changes in the definition of income and to potential data contamination. Finally, we analyse some of the causes which may be driving the overall picture of income inequality using two decomposition techniques. From this analyses three variables emerge as the major responsible factors for the observed improvement in the income distribution: education, household composition and socioeconomic situation of the household head.

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File URL: http://www.ecap.uab.es/RePEc/doc/wp0107.pdf
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Bibliographic Info

Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number wp0107.

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Length: 40 pages
Date of creation: Apr 2001
Date of revision:
Handle: RePEc:uab:wprdea:wp0107

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  1. Esteban, J. & Ray, D., 1993. "On the Measurement of Polarization," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 221.93, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, Econometric Society, vol. 48(3), pages 613-25, April.
  3. Cowell, Frank A & Victoria-Feser, Maria-Pia, 1996. "Robustness Properties of Inequality Measures," Econometrica, Econometric Society, Econometric Society, vol. 64(1), pages 77-101, January.
  4. Frank Cowell & Maria-Pia Victoria-Feser, 2001. "Distributional dominance with dirty data," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 2239, London School of Economics and Political Science, LSE Library.
  5. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, Econometric Society, vol. 50(1), pages 193-211, January.
  6. Duclos, Jean-Yves & Mercader-Prats, Magda, 1999. "Household Needs and Poverty: With Application to Spain and the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 45(1), pages 77-98, March.
  7. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, Econometric Society, vol. 55(4), pages 749-64, July.
  8. Jenkins, S., 1988. "The Measurement Of Economic Inequality," Papers, Australian National University - Department of Economics 170, Australian National University - Department of Economics.
  9. Jenkins, Stephen P, 1996. "Recent Trends in the UK Income Distribution: What Happened and Why?," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 12(1), pages 29-46, Spring.
  10. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-42, June.
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Cited by:
  1. Budria, Santiago, 2006. "Education and Inequality: Evidence from Spain," MPRA Paper 1098, University Library of Munich, Germany.
  2. Francisco J. Goerlich-Gisbert & Casilda Lasso de la Vega & Ana Marta Urrutia, 2009. "The ‘extended’ Atkinson family and changes in the expenditure distribution. Spain 1973/74-2003," Journal of Income Distribution, Journal of Income Distribution, Journal of Income Distribution, vol. 18(1), pages 20-41, March.
  3. Farré, Lídia & Vella, Francis, 2006. "Macroeconomic Conditions and the Distribution of Income in Spain," IZA Discussion Papers 2512, Institute for the Study of Labor (IZA).
  4. Carlos Mulas-Granados, 2005. "Fiscal Adjustments and the Short-Term Trade-Off between economic growth and equality," Hacienda Pública Española, IEF, IEF, vol. 172(1), pages 61-92, June.
  5. Josep Pijoan-Mas & Virginia Sanchez-Marcos, 2010. "Spain is Different: Falling Trends of Inequality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 154-178, January.
  6. Juan Ramón García, . "La desigualdad salarial en España. Efectos de un diseño muestral complejo," Working Papers 2003-26, FEDEA.

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