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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)

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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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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
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Handle: RePEc:uab:wprdea:wp0107

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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. Frank A Cowell & Maria-Pia Victoria-Feser, 2001. "Distributional Dominance with Dirty Data," STICERD - Distributional Analysis Research Programme Papers 51, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
  2. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April. [Downloadable!] (restricted)
  3. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-51, July. [Downloadable!] (restricted)
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  4. 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, Blackwell Publishing, vol. 34(2), pages 115-42, June.
  5. Duclos, Jean-Yves & Mercader-Prats, Magda, 1999. "Household Needs and Poverty: With Application to Spain and the U.K," Review of Income and Wealth, Blackwell Publishing, vol. 45(1), pages 77-98, March.
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  6. Jenkins, Stephen P, 1996. "Recent Trends in the UK Income Distribution: What Happened and Why?," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 29-46, Spring.
  7. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July. [Downloadable!] (restricted)
  8. Cowell, Frank A & Victoria-Feser, Maria-Pia, 1996. "Robustness Properties of Inequality Measures," Econometrica, Econometric Society, vol. 64(1), pages 77-101, January. [Downloadable!] (restricted)
  9. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January. [Downloadable!] (restricted)
  10. Jenkins, S., 1988. "The Measurement Of Economic Inequality," Papers 170, Australian National University - Department of Economics.
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(explanations, 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. Lídia Farré-Olalla & Francis Vella, 2006. "Macroeconomic Conditions and the Distribution of Income in Spain," IZA Discussion Papers 2512, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Juan Ramón García, . "La desigualdad salarial en España. Efectos de un diseño muestral complejo," Working Papers 2003-26, FEDEA. [Downloadable!]
  3. Carlos Mulas-Granados, 2005. "Fiscal Adjustments and the Short-Term Trade-Off between economic growth and equality," Hacienda Pública Española, IEF, vol. 172(1), pages 61-92, June. [Downloadable!]
  4. Goerlich, Francisco José & Lasso de la Vega, Mª Casilda & Urrutia, Ana Marta, 2009. "The Extended Atkinson Family and Changes in the Expenditure Distribution: Spain 1973/74-2003," MPRA Paper 16256, University Library of Munich, Germany, revised 2009. [Downloadable!]
  5. Budria, Santiago, 2006. "Education and Inequality: Evidence from Spain," MPRA Paper 1098, University Library of Munich, Germany. [Downloadable!]
  6. Josep Pijoan-Mas & Virginia Sanchez-Marcos, . "Spain is Different: Falling Trends of Inequality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics. [Downloadable!] (restricted)
    Other versions:
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