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Inequality in Latin America : determinants and consequences

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Author Info
Lopez , J. Humberto
Perry, Guillermo

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Abstract

Latin America is together with Sub-Saharan Africa the most unequal region of the world. This paper documents recent inequality trends in the Latin American region, going beyond traditional measures of income inequality. The paper also reviews some of the explanations that have been put forward to understand the current situation, and discusses why reducing income inequality should be an important policy priority. In particular, the authors discuss channels through which inequality can affect growth and output volatility. On the whole, the analysis suggests a two-pronged approach to reduce inequality in the region that combines policies aimed at improving the distribution of assets (especially education) with elements aimed at improving the capacity of the state to redistribute income through taxes and transfers.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4504.

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Date of creation: 01 Feb 2008
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Handle: RePEc:wbk:wbrwps:4504

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Related research
Keywords: Inequality; Rural Poverty Reduction; Economic Conditions and Volatility; Achieving Shared Growth; Poverty Impact Evaluation;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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Cited by:
(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. Jeffrey G. Williamson, 2009. "Five Centuries of Latin American Inequality," NBER Working Papers 15305, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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