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Conditional cash transfers in Brazil, Chile and Mexico: impacts upon inequality

Author

Listed:
  • Sergei Soares

    (Instituto de Pesquisa Econômica Aplicada)

  • Rafael Guerreiro Osório

    (International Poverty Centre, UNDP)

  • Fábio Veras Soares

    (Instituto de Pesquisa Econômica Aplicada)

  • Marcelo Medeiros

    (Instituto de Pesquisa Econômica Aplicada)

  • Eduardo Zepeda

    (Carnegie Endowment for International Peace)

Abstract

We decompose changes in the Gini coefficient to investigate whether the Conditional Cash Tranfers (CCT) have had an inequality reducing effect in three Latin American countries: Brazil, Mexico and Chile. We conclude that CCT programs helped reducing inequality between the mid-1990s and the mid-2000s. The share of total income represented by the CCTs is very small, less than 1%. But as their targeting is outstanding, the equalising impact of CCTs was responsible for about 21% of the fall in Brazilian and Mexican inequality figures In Chile the effect was responsible for around 15% of the reduction.

Suggested Citation

  • Sergei Soares & Rafael Guerreiro Osório & Fábio Veras Soares & Marcelo Medeiros & Eduardo Zepeda, 2009. "Conditional cash transfers in Brazil, Chile and Mexico: impacts upon inequality," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 0(Special i), pages 207-224.
  • Handle: RePEc:emx:esteco:v:-:y:2009:i:special:p:207-224
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    References listed on IDEAS

    as
    1. Atkinson, A B, 1997. "Bringing Income Distribution in from the Cold," Economic Journal, Royal Economic Society, vol. 107(441), pages 297-321, March.
    2. Hoddinott, John & Skoufias, Emmanuel, 2004. "The Impact of PROGRESA on Food Consumption," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 37-61, October.
    3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1231-1294.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Conditional Cash Transfers; CCT; inequality; Gini decomposition;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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