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Earnings Inequality Within and Across Gender, Racial, and Ethnic Groups in Latin America

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Author Info

  • Wendy Cunningham

    (World Bank)

  • Joyce P. Jacobsen

    ()
    (Department of Economics, Wesleyan University)

Abstract

Latin American countries are generally characterized as displaying high income and earnings inequality overall along with high inequality by gender, race, and ethnicity. However, the latter phenomenon is not a major contributor to the former phenomenon. Using household survey data from four Latin American countries (Bolivia, Brazil, Guatemala, and Guyana), we demonstrate (using Theil index decompositions as well as Gini indices, and 90/10 and 50/10 percentile comparisons) that within-group inequality rather than betweengroup inequality is the main contributor to overall inequality. Mlti-stage simulations in which the relatively disadvantaged gender and/or racial/ethnic group is treated more and more as if it were the relatively advantaged group tend to reduce overall inequality measures only slightly and in some cases have the effect of increasing inequality measures.

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File URL: http://repec.wesleyan.edu/pdf/jjacobsen/2003001_jacobsen.pdf
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Bibliographic Info

Paper provided by Wesleyan University, Department of Economics in its series Wesleyan Economics Working Papers with number 2003-001.

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Length: 50 pages
Date of creation: Aug 2003
Date of revision:
Handle: RePEc:wes:weswpa:2003-001

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Related research

Keywords: earnings inequality; income inequality; gender; race; and ethnicity differences;

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References

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  1. François Bourguignon & Francisco H.G. Ferreira & Phillipe G. Leite, 2002. "Beyond Oaxaca-Blinder: accounting for differences in household income distributions across countries," Textos para discussão 452, Department of Economics PUC-Rio (Brazil).
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Cited by:
  1. Juan Pablo Atal & Hugo R. Ñopo & Natalia Winder, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," IDB Publications 5398, Inter-American Development Bank.
  2. Lourdes Gallardo & Hugo Nopo, 2009. "Ethnic and Gender Wage Gaps in Ecuador," Research Department Publications 4625, Inter-American Development Bank, Research Department.
  3. World Bank, 2011. "Work and Family : Latin American and Caribbean Women in Search of a New Balance," World Bank Other Operational Studies 12489, The World Bank.
  4. Arun, Thankom G. & Borooah, Vani, 2004. "Earnings Inequality in Sri Lanka," Development Economics and Public Policy Working Papers 30548, University of Manchester, Institute for Development Policy and Management (IDPM).
  5. Stephanie Seguino, 2005. "All Types of Inequality are Not Created Equal: Divergent Impacts of Inequality on Economic Growth," Economics Working Paper Archive wp_433, Levy Economics Institute.

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