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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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)
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.:
- Leonardo Gasparini & Guillermo Cruces & Leopoldo Tornarolli & Mariana Marchionni, 2009. "A Turning Point? Recent Developments on Inequality in Latin America and the Caribbean," CEDLAS, Working Papers 0081, CEDLAS, Universidad Nacional de La Plata.
- Giovanni Andrea Cornia, 2010.
"Income Distribution under Latin America's New Left Regimes,"
Journal of Human Development and Capabilities,
Taylor and Francis Journals, vol. 11(1), pages 85-114.
- Giovanni Andrea cornia, 2009. "Income Distribution under Latin America’s New Left Regimes," Working Papers Series wp2009_16.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze dell'Economia e Dell'Impresa.
- Kristensen, Nicolai & Cunningham, Wendy, 2006. "Do minimum wages in Latin America and the Caribbean matter ? Evidence from 19 countries," Policy Research Working Paper Series 3870, The World Bank.
- Prados de la Escosura, Leandro, .
"Growth, inequality, and poverty in Latin America: historical evidence, controlled conjectures.,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/416, Universidad Carlos III de Madrid.
- Leandro Prados de la Escosura, 2005. "Growth, Inequality, And Poverty In Latin America: Historical Evidence, Controlled Conjectures," Working Papers in Economic History wh054104, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
- Giovanni Andrea Cornia & Juan Carlos Gómez-Sabaini & Bruno Martorano, 2012.
"A New Fiscal Pact, Tax Policy Changes and Income Inequality,"
Working Papers Series
wp2012_03.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze dell'Economia e Dell'Impresa.
- Cornia, Giovanni Andrea & Martorano, Bruno, 2011. "A New Fiscal Pact, Tax Policy Changes and Income Inequality," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Birdsall, Nancy & de la Torre, Augusto & Caicedo, Felipe Valencia, 2010. "The Washington consensus : assessing a damaged brand," Policy Research Working Paper Series 5316, The World Bank.
- Roberto Frenkel & Martin Rapetti, 2008. "Five years of competitive and stable real exchange rate in Argentina, 2002-2007," International Review of Applied Economics, Taylor and Francis Journals, vol. 22(2), pages 215-226.
- Nancy Birdsall, Nora Lustig, and Darryl McLeod, . "Declining Inequality in Latin America: Some Economics, Some Politics - Working Paper 251," Working Papers 251, Center for Global Development.
- Torche, Florencia & Spilerman, Seymour, 2006. "Household Wealth in Latin America," Working Paper Series RP2006/114, World Institute for Development Economic Research (UNU-WIDER).
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
- Ponce, Juan & Vos, Rob, 2012. "Redistribution without Structural Change in Ecuador: Rising and Falling Income Inequality in the 1990s and 2000s," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).
If references are entirely missing, you can add them using this form.