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Income distribution and income sources in Uruguay

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Abstract

This paper is concerned with changes in the distribution of income sources in Uruguay after the late eighties. An apparent stability in the distribution of total incomes is hiding deep transformations affecting the generation of that income. The distribution across all income earners at the end of the eighties exhibited two well-distinguished poles, each associated with one of the main income sources: pension benefits and wages. This bimodality diminished during the nineties due to the reduction in polarization by income sources. In the same period we find that in the case of labor earnings there was a net transfer of population mass from the middle of the distribution to both extremes, which results in an increasing polarization within this income source. This phenomenon resembles the Anglo-Saxon experience of the shrinking middle class.

Suggested Citation

  • Carlos Gradín & Máximo Rossi, 2006. "Income distribution and income sources in Uruguay," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 49-69, May.
  • Handle: RePEc:cem:jaecon:v:9:y:2006:n:1:p:49-69
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    References listed on IDEAS

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    1. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
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    6. X. Zhang & R. Kanbur, 2001. "What Difference Do Polarisation Measures Make? An Application to China," Journal of Development Studies, Taylor & Francis Journals, vol. 37(3), pages 85-98.
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    Cited by:

    1. Michal Brzezinski, 2013. "Income Polarization and Economic Growth," LIS Working papers 587, LIS Cross-National Data Center in Luxembourg.
    2. Yoonseok Lee & Donggyun Shin, 2013. "Measuring Social Unrest Based on Income Distribution," Center for Policy Research Working Papers 160, Center for Policy Research, Maxwell School, Syracuse University.
    3. Joon-Woo Nahm, 2008. "Shrinking Middle Class and Changing Income Distribution of Korea: 1995-2005," Korean Economic Review, Korean Economic Association, vol. 24, pages 345-365.

    More about this item

    Keywords

    income sources; inequality; labor market; pension benefits; polarization;

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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