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Inequality at Low Levels of Aggregation in Chile

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Listed:
  • Claudio A. Agostini
  • Philip H. Brown

Abstract

Despite success in poverty reduction, inequality in Chile has remained virtually unchanged over the last 20 years. High levels of inequality have been shown to hamper further reductions in poverty as well as economic growth, and local inequality has been shown to affect such outcomes as violence and health. The study of inequality at the local level is thus crucial for understanding the economic wellbeing of a country. Local measures of inequality have been difficult to obtain, but recent theoretical advances have enabled the combination of survey and census data to generate estimates of inequality that are robust at disaggregated geographic levels. We employ this methodology to produce consistent and precise estimates of inequality for every county in Chile. We find considerable heterogeneity in county-level estimates of inequality, with Gini coefficients ranging from 0.41 to 0.64. Copyright © 2010 Blackwell Publishing Ltd.

Suggested Citation

  • Claudio A. Agostini & Philip H. Brown, 2010. "Inequality at Low Levels of Aggregation in Chile," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 213-226, May.
  • Handle: RePEc:bla:rdevec:v:14:y:2010:i:2:p:213-226
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    References listed on IDEAS

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    1. Elbers, Chris & Fujii, Tomoki & Lanjouw, Peter & Ozler, Berk & Yin, Wesley, 2007. "Poverty alleviation through geographic targeting: How much does disaggregation help?," Journal of Development Economics, Elsevier, vol. 83(1), pages 198-213, May.
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    4. Chris Elbers & Peter F. Lanjouw & Johan A. Mistiaen & Berk Özler & Ken Simler, 2004. "On the Unequal Inequality of Poor Communities," World Bank Economic Review, World Bank Group, vol. 18(3), pages 401-421.
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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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