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The Evolution of Inequality in Latin America in the 21st Century: What are the patterns, drivers and causes?

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  • Francesco Bogliacino
  • Daniel Rojas Lozano

Abstract

The paper analyses the evolution of inequality for the largest economies of the Latin American region in the 21st century, with separate consideration of income and wealth. The drivers of changes in inequality and possible underlying causes are examined, including the role of the new wave of leftist governments. The evidence reveals that income inequality decreased, though wealth inequality displayed a much less homogeneous pattern. Statistically, the decrease in inequality is associated with labour market changes, and especially with State redistribution through subsidies. Wealth inequality is mainly correlated with the change in the share of financial wealth. A possible causal interpretation is that the symbolic victories of the new left may have inflated social pressures, mostly in the presence of rents generated by the commodity boom.

Suggested Citation

  • Francesco Bogliacino & Daniel Rojas Lozano, 2018. "The Evolution of Inequality in Latin America in the 21st Century: What are the patterns, drivers and causes?," PSL Quarterly Review, Economia civile, vol. 71(286), pages 279-308.
    • Handle: RePEc:psl:pslqrr:2018:32
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    Cited by:

    1. Leonardo Gasparini, 2019. "La Desigualdad en su Laberinto: Hechos y Perspectivas sobre Desigualdad de Ingresos en América Latina," CEDLAS, Working Papers 0256, CEDLAS, Universidad Nacional de La Plata.
    2. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    inequality; Latin America; income; wealth; social policy;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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