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The distribution of income in Uruguay: the effects of economic and institutional reforms

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Author Info
Carlos Gradín () (Departamento de Economía Aplicada, Universidade de Vigo (Spain))
Máximo Rossi () (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

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Abstract

This paper is concerned with distributive aspects of crucial economic and institutional reforms experienced by income sources in Uruguay after the late eighties. These reforms involved both, the labor market and the pensions system, and we provide empirical evidence about the different way they affected thedistribution of income. The distribution of income across all earners at the end of the eighties exhibited two well-distinguished poles, each associated with one income source. This bimodality faded with time during the nineties due to the general improvement in retirement pensions, vanishing polarization by income sources. For the same period we find in the case of labor earnings a net transfer of population mass from the middle of the distribution to both extremes, which results in increasing polarization within this income source.

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Publisher Info
Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 0301.

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Length: 21 pages
Date of creation: Dec 2001
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Handle: RePEc:ude:wpaper:0301

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  1. Esteban, J.M. & Ray, D., 1992. "On the Measurement of Polarization," UFAE and IAE Working Papers 171.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
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  2. Esteban, J. & Gradin, C. & Ray, D., 1999. "Extension of a Measure of Polarization, with an Application to the Income Distribution of Five OECD Countries," Papers 24, El Instituto de Estudios Economicos de Galicia Pedro Barrie de la Maza.
  3. Yitzhaki, Shlomo & Lerman, Robert I, 1991. "Income Stratification and Income Inequality," Review of Income and Wealth, Blackwell Publishing, vol. 37(3), pages 313-29, September.
  4. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
  5. Wolfson, Michael C, 1997. "Divergent Inequalities: Theory and Empirical Results," Review of Income and Wealth, Blackwell Publishing, vol. 43(4), pages 401-21, December.
  6. Yitzhaki, Shlomo, 1994. "Economic distance and overlapping of distributions," Journal of Econometrics, Elsevier, vol. 61(1), pages 147-159, March. [Downloadable!] (restricted)
  7. Daniel Miles & Máximo Rossi, 1999. "Geographic concentration and structure of wages in developing countries: the case of Uruguay," Documentos de Trabajo (working papers) 1399, Department of Economics - dECON.
  8. D'Ambrosio, Conchita, 2001. "Household Characteristics and the Distribution of Income in Italy: An Application of Social Distance Measures," Review of Income and Wealth, Blackwell Publishing, vol. 47(1), pages 43-64, March. [Downloadable!] (restricted)
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  1. Alvaro Forteza, 2004. "Uruguay, Options for Pensions Reform," Public Economics 0406002, EconWPA. [Downloadable!]
  2. Alvaro Forteza, 2004. "Uruguay, Pensions and Fiscal Sustainability," Documentos de Trabajo (working papers) 0204, Department of Economics - dECON. [Downloadable!]
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