IDEAS home Printed from https://ideas.repec.org/a/cem/jaecon/v3y2000n1p93-134.html
   My bibliography  Save this article

Persistent Poverty and Excess Inequality: Latin America, 1970-1995

Author

Listed:

Abstract

This work assesses the changes in aggregate poverty and inequality that have taken place in Latin America during the past 26 years. With this objective, we put together the largest number of observations on income distribution for the region for the period from 1970-1995. We find that poverty and inequality have not declined during the 1990s in spite of improvements at the macroeconomic level. The characteristics of our data allow us to perform various comparisons between countries. Our results show that even though there are differences in levels across countries, inequality and poverty in most of them follow similar trends during the period under study.

Suggested Citation

  • Juan Luis Londoño & Miguel Székely, 2000. "Persistent Poverty and Excess Inequality: Latin America, 1970-1995," Journal of Applied Economics, Universidad del CEMA, vol. 3, pages 93-134, May.
  • Handle: RePEc:cem:jaecon:v:3:y:2000:n:1:p:93-134
    as

    Download full text from publisher

    File URL: https://ucema.edu.ar/publicaciones/download/volume3/londono_szekely.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Villasenor, JoseA. & Arnold, Barry C., 1989. "Elliptical Lorenz curves," Journal of Econometrics, Elsevier, vol. 40(2), pages 327-338, February.
    2. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," The World Bank Economic Review, World Bank, vol. 11(2), pages 357-382, May.
    3. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    4. Grosh, Margaret E & Glewwe, Paul, 1996. "Household Survey Data from Developing Countries: Progress and Prospects," American Economic Review, American Economic Association, vol. 86(2), pages 15-19, May.
    5. Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Economics Letters, Elsevier, vol. 56(1), pages 51-57, September.
    6. T. Paul Schultz, 1998. "Inequality in the distribution of personal income in the world: How it is changing and why," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(3), pages 307-344.
    7. Lustig, Nora, 1996. "La medición de la pobreza en México: El origen de las discrepancias. Una nota metodológica," El Trimestre Económico, Fondo de Cultura Económica, vol. 63(251), pages 1229-1237, julio-sep.
    8. Kakwani, N., 1993. "Performance in living standards : An international comparison," Journal of Development Economics, Elsevier, vol. 41(2), pages 307-336, August.
    9. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    10. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521438827.
    11. Altimer, Oscar, 1987. "Income Distribution Statistics in Latin America and Their Reliability," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 33(2), pages 111-155, June.
    12. Altimir, Oscar, 1994. "Income distribution and poverty through crisis and adjustment," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    13. Atkinson, Anthony B, 1991. "Comparing Poverty Rates Internationally: Lessons from Recent Studies in Developed Countries," The World Bank Economic Review, World Bank, vol. 5(1), pages 3-21, January.
    14. Grosh, Margaret E & Nafziger, E Wayne, 1986. "The Computation of World Income Distribution," Economic Development and Cultural Change, University of Chicago Press, vol. 34(2), pages 347-359, January.
    15. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
    16. Chen, Shaohua & Datt, Gaurav & Ravallion, Martin, 1994. "Is Poverty Increasing in the Developing World?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(4), pages 359-376, December.
    17. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-1434, November.
    18. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
    19. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
    20. Anthony Atkinson & Timothy Smeeding & Lee Rainwater, 1994. "Income Distribution in European Countries," LIS Working papers 121, LIS Cross-National Data Center in Luxembourg.
    21. Fields, Gary S, 1992. "Changing Poverty and Inequality in Latin America," Public Finance = Finances publiques, , vol. 47(Supplemen), pages 59-76.
    22. Martin Ravallion & Gaurav Datt & Dominique van de Walle, 1991. "Quantifying Absolute Poverty In The Developing World," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 345-361, December.
    23. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    24. Shaohua Chen & Gaurav Datt & Martin Ravallion, 1994. "Is Poverty Increasing In The Developing World?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(4), pages 359-376, December.
    25. Kakwani, Nanak, 1993. "Poverty and Economic Growth with Application to Cote d'Ivoire," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(2), pages 121-139, June.
    26. Tsakloglou, Panos, 1993. "Aspects of inequality in Greece : Measurement, decomposition and intertemporal change: 1974, 1982," Journal of Development Economics, Elsevier, vol. 40(1), pages 53-74, February.
    27. Lerman, Robert I. & Yitzhaki, Shlomo, 1989. "Improving the accuracy of estimates of Gini coefficients," Journal of Econometrics, Elsevier, vol. 42(1), pages 43-47, September.
    28. Ravallion, Martin & Datt, Gaurav & van de Walle, Dominique, 1991. "Quantifying Absolute Poverty in the Developing World," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 345-361, December.
    29. Ravallion, M. & Datt, G., 1991. "Growth and Redistribution Components of Changes in Poverty Measures," Papers 83, World Bank - Living Standards Measurement.
    30. Theil, Henri & Theil, Henri, 1979. "World income inequality and its components," Economics Letters, Elsevier, vol. 2(1), pages 99-102.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Almas Heshmati, 2006. "Continental And Sub-Continental Income Inequality," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 7-52, January.
    2. Leonardo Gasparini & Pablo Glüzmann, 2012. "Estimating Income Poverty and Inequality from the GallupWorld Poll: The case of Latin America and the Caribbean," Journal of Income Distribution, Ad libros publications inc., vol. 21(1), pages 3-27, March.
    3. William C. Gruben & Darryl McLeod, 2003. "Choosing among rival poverty rates : some tests for Latin America," Center for Latin America Working Papers 0103, Federal Reserve Bank of Dallas.
    4. Armando Barrientos, 2013. "Politicising poverty in Latin America in the light of Rawls’ ‘strains of commitment’ argument for a social minimum," Global Development Institute Working Paper Series 18213, GDI, The University of Manchester.
    5. Fernández, Manuel & Messina, Julián, 2018. "Skill premium, labor supply, and changes in the structure of wages in Latin America," Journal of Development Economics, Elsevier, vol. 135(C), pages 555-573.
    6. repec:idb:brikps:340 is not listed on IDEAS
    7. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute of Labor Economics (IZA).
    8. Ángela Jeaneth Ospina Enciso, 2011. "A comparative analysis between the relation of income distribution and economic regional integration in East Asia and Latin America," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 3(1), pages 107-127, June.
    9. Miguel Székely & Nora Lustig & Martin Cumpa & José Antonio Mejía-Guerra, 2000. "¿Sabemos qué tanta pobreza hay?," Research Department Publications 4240, Inter-American Development Bank, Research Department.
    10. Franco, Rolando & Sáinz, Pedro, 2001. "The Latin American social agenda in the year 2000," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    11. Miguel Braun & Luciano di Gresia, 2003. "Towards Effective Social Insurance in Latin America: The Importance of Countercyclical Fiscal Policy," Research Department Publications 4333, Inter-American Development Bank, Research Department.
    12. Fortun Vargas, Jonathan M., 2012. "Declining inequality in Bolivia: How and Why," MPRA Paper 41208, University Library of Munich, Germany.
    13. Miguel Szekely & Nora Lustig & Martin Cumpa & Jose Antonio Mejia, 2004. "Do we know how much poverty there is?," Oxford Development Studies, Taylor & Francis Journals, vol. 32(4), pages 523-558.
    14. Miguel Székely, 2001. "Los años 90 en América Latina: otra década de desigualdad persistente, pero con un poco menos de pobreza," Research Department Publications 4272, Inter-American Development Bank, Research Department.
    15. Manuel Fernández & Gabriela Serrano, 2022. "New Perspectives on Inequality in Latin America," Documentos CEDE 20295, Universidad de los Andes, Facultad de Economía, CEDE.
    16. 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.
    17. Miguel Székely, 2001. "Where to From Here? Generating Capabilities and Creating Opportunities for the Poor," Research Department Publications 3128, Inter-American Development Bank, Research Department.
    18. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    19. Claudia Biancotti, 2004. "A Polarization of Polarization? The Distribution of Inequality 1970-1996," Temi di discussione (Economic working papers) 487, Bank of Italy, Economic Research and International Relations Area.
    20. Miguel Székely, 2001. "The 1990s in Latin America: Another Decade of Persistent Inequality, but with Somewhat Lower Poverty," Research Department Publications 4271, Inter-American Development Bank, Research Department.
    21. Chiara Binelli, 2008. "Returns to Education and Increasing Wage Inequality in Latin America," Working Paper series 30_08, Rimini Centre for Economic Analysis.
    22. repec:idb:brikps:322 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Londoño, Juan Luis & Székely, Miguel, 1997. "Persistent Poverty and Excess Inequality: Latin America, 1970-1995," IDB Publications (Working Papers) 6092, Inter-American Development Bank.
    2. Xavier Sala-i-Martin, 2002. "The World Distribution of Income (estimated from Individual Country Distributions)," NBER Working Papers 8933, National Bureau of Economic Research, Inc.
    3. Stefano Pettinato, 2002. "A Conceptual Primer on the Currents and Trends in Inequality," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 3(1), pages 23-56.
    4. B. Capéau & A. Decoster, 2003. "The Rise or Fall of World Inequality Big Issue or Apparent Controversy?," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 547-572.
    5. Xavier Sala-i-Martin, 2001. "The disturbing 'rise' of global income inequality," Economics Working Papers 616, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2002.
    6. Dhongde, Shatakshee & Minoiu, Camelia, 2013. "Global Poverty Estimates: A Sensitivity Analysis," World Development, Elsevier, vol. 44(C), pages 1-13.
    7. Shaohua Chien & Martin Ravallion, 2001. "How did the world's poorest fare in the 1990s?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 283-300, September.
    8. Bart Capéau & Andre Decoster, 2004. "The Rise or Fall of World Inequality: A Spurious Controversy?," WIDER Working Paper Series DP2004-02, World Institute for Development Economic Research (UNU-WIDER).
    9. Branko Milanovic, 2002. "True World Income Distribution, 1988 and 1993: First Calculation Based on Household Surveys Alone," Economic Journal, Royal Economic Society, vol. 112(476), pages 51-92, January.
    10. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 351-397.
    11. Paolo Liberati, 2015. "The World Distribution of Income And Its Inequality, 1970–2009," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(2), pages 248-273, June.
    12. ALi Abdel Gadir Ali, "undated". "Poverty in the Arab Region: A Selective Review," API-Working Paper Series 0402, Arab Planning Institute - Kuwait, Information Center.
    13. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820-1992," American Economic Review, American Economic Association, vol. 92(4), pages 727-744, September.
    14. Kanbur, Ravi, 2000. "Income distribution and development," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 13, pages 791-841, Elsevier.
    15. Rana Hasan & M.G. Quibria & Yangseon Kim, 2003. "Poverty and Economic Freedom: Evidence from Cross-Country Data," Economics Study Area Working Papers 60, East-West Center, Economics Study Area.
    16. Miguel Székely & Marianne Hilgert, 1999. "¿Qué hay detrás de la desigualdad cuantificada: investigación empleando datos de América Latina," Research Department Publications 4189, Inter-American Development Bank, Research Department.
    17. Ferreira, Francisco H.G. & Ravallion, Martin, 2008. "Global poverty and inequality : a review of the evidence," Policy Research Working Paper Series 4623, The World Bank.
    18. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    19. Datt, Gaurav, 1998. "Poverty in India and Indian states," FCND discussion papers 47, International Food Policy Research Institute (IFPRI).
    20. Ruiz-Castillo, Javier, 2005. "Relative and absolute poverty : the case of México, 1992-2004," UC3M Working papers. Economics we061103, Universidad Carlos III de Madrid. Departamento de Economía.

    More about this item

    Keywords

    Poverty; Inequality; Latin America;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cem:jaecon:v:3:y:2000:n:1:p:93-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valeria Dowding (email available below). General contact details of provider: https://edirc.repec.org/data/cemaaar.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.