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Income Polarization in Argentina: Pure Income Polarization, Theory and Applications

Author

Listed:
  • Matías Horenstein

    (Universidad Nacional de La Plata and CEDLAS (Centro de Estudios Distributivos, Laborales y Sociales))

  • Sergio Olivieri

    (Universidad Nacional de La Plata and CEDLAS (Centro de Estudios Distributivos, Laborales y Sociales))

Abstract

This paper applies newly developed methods for the computation of income polarization by Duclos-Esteban-Ray (2004) to the Argentine case between 1998 and 2002. We find that despite the slowdown in the growth of the inequality, the rate of growth of polarization increased every year. Low-income groups in the population were those who contributed the most to polarization. The results of a micro-decomposition show that on average all the effects led to an increase in polarization between 1998 and 2002. Although most of the change came from unobservable factors, region, returns to education and return to experience had a moderate impact. Furthermore, polarization increased within every geographic region. This change had different intensity throughout them leading to distinct levels of “tension” within the country.

Suggested Citation

  • Matías Horenstein & Sergio Olivieri, 2004. "Income Polarization in Argentina: Pure Income Polarization, Theory and Applications," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1-2), pages 39-66, January-D.
  • Handle: RePEc:lap:journl:537
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    Cited by:

    1. Leonardo Gasparini & Matías Horenstein & Sergio Olivieri, 2006. "Economic Polarisation in Latin America and the Caribbean: What do Household Surveys Tell Us?," CEDLAS, Working Papers 0038, CEDLAS, Universidad Nacional de La Plata.
    2. Viollaz, Mariana & Olivieri, Sergio & Alejo, Javier, 2009. "Labor income polarization in greater Buenos Aires," MPRA Paper 42944, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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