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Uruguayâ..s Income Inequality and Political Regimes during 1981â..2010

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  • Amarante, Veronica
  • Vigorito, Andrea

Abstract

This study assesses the evolution of inequality in Uruguay during 1981-2010, considered as subperiods built on the basis of the main policy regimes observed: extreme right (1981-84), centre-right (1985-89), right (1990-2004), and centre-left (2005-10). Income inequality diminished during the restoration of democracy, but started to grow steadily in the mid-1990s and despite recent redistributive reforms, continued to grow, albeit modestly, until 2007. In 2008 inequality lessened, continuing this trend through 2009 and 2010.Trade liberalization, suppression of centralized wage-setting mechanisms, the drop in minimum wages and the lack of a social protection system oriented to the most deprived households explain the rise in inequality during the last decade. In a context of a stable macroeconomic system, the recent fall in inequality resulted from a reduction in labour income inequality and the introduction of noncontributory public transfers schemes.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2011/wp2011-094.pdf
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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2011/94.

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Length: 41
Date of creation: 2011
Date of revision:
Handle: RePEc:unu:wpaper:wp2011-94

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Keywords: inequality; Uruguay; transfers; wage-setting mechanisms; returns to education; political regimes;

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References

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  1. Gunther, Isabel & Grimm, Michael, 2007. "Measuring pro-poor growth when relative prices shift," Journal of Development Economics, Elsevier, vol. 82(1), pages 245-256, January.
  2. Guillermo Cruces & Carolina García Domench & Leonardo Gasparini, 2012. "Inequality in Education: Evidence for Latin America," CEDLAS, Working Papers 0135, CEDLAS, Universidad Nacional de La Plata.
  3. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
  4. Carlos Casacuberta & Marcel Vaillant, 2002. "Trade and wages in Uruguay in the 1990’s," Documentos de Trabajo (working papers) 0902, Department of Economics - dECON.
  5. Giovanni Andrea cornia, 2009. "Income Distribution under Latin America’s New Left Regimes," Working Papers - Economics wp2009_16.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  6. Veronica Amarante & Rodrigo Arim & Gioia de Melo & Andrea Vigorito, 2010. "Family Allowances and Child School Attendance: An ex-ante Evaluation of Alternative Schemes in Uruguay," Working Papers PMMA 2010-07, PEP-PMMA.
  7. Guillermo Alves & Verónica Amarante & Gonzalo Salas & Andrea Vigorito, 2012. "La desigualdad del ingreso en Uruguay entre 1986 y 2009," Documentos de Trabajo basados en Monografías (students working papers) 12-03, Instituto de Economía - IECON.
  8. Verónica Amarante & Marisa Bucheli & Cecilia Olivieri & Ivone Perazzo, 2011. "Distributive impacts of alternative tax structures. The case of Uruguay," Documentos de Trabajo (working papers) 0911, Department of Economics - dECON.
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Cited by:
  1. Buendía García, Luis & Sanabria Martín, Antonio, 2013. "Productive Structure, Political Cycle And Inequality: The Case Of Uruguay, 2004-2011," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 22(ex).
  2. Bruno Martorano, 2012. "The Impact of Uruguay’s 2007 Tax Reform on Equity and Efficiency," Working Papers - Economics wp2012_06.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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