Inequality Trends and their Determinants: Latin America over 1990-2011
AbstractThe paper reviews the steady and widespread decline in income inequality which has taken place in most of Latin America over 2002-10 and which..if continued for another 2-3 years..would reduce the average regional income inequality to pre-liberalization levels. The paper then focuses on the factors, which may explain such inequality decline. A review of the literature and an econometric test indicate that a few complementary factors played an important role in this regard, including a drop in the skill premium following a rapid expansion of secondary education, and the adoption of a new development model by a growing number of left-of-centre governments which emphasizes fiscally-prudent but more equitable macroeconomic, tax, social expenditure and labour policies. For the region as a whole, improvements in terms of trade, migrant remittances, FDI and world growth playeda less important role than expected although their impact was perceptible in countries where such transactions were sizeable.
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Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2012/09.
Date of creation: 2012
Date of revision:
income inequality; human capital inequality; policy regimes; external conditions; Latin America;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-21 (All new papers)
- NEP-DEV-2012-03-21 (Development)
- NEP-LAM-2012-03-21 (Central & South America)
- NEP-LTV-2012-03-21 (Unemployment, Inequality & Poverty)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Inequality Trends and their Determinants: Latin America over 1990-2011
by Maximo Rossi in Wikiprogress América Latina on 2012-03-23 23:08:00
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