IDEAS home Printed from https://ideas.repec.org/p/ags/iffp23/16312.html

Distribution And Growth In Latin America In An Era Of Structural Reform

Author

Listed:
  • Morley, Samuel A.

Abstract

The first section of this paper reviews the most recent evidence on inequality in 18 Latin American countries and shows that in all but four the changes in inequality over the 1990s were small and insignificant. The distribution depends on the ownership and rate of return on assets, particularly human capital. In the short run changes in these two variables tend to be offsetting-growth widens skill-differentials which is regressive, but advances in education are progressive. The two effects roughly cancel each other out absent severe macroeconomic shocks or revolutionary changes in the rules of the game. The paper then summarizes various recent papers as well as the author’s recent work on the impact of structural reforms on inequality. That work shows that the recent reforms have had a negative but small regressive impact on inequality mainly because many of the individual reforms had offsetting effects. Trade and tax reform have been unambiguously regressive, but opening up the capital account is progressive. Finally, the paper presents evidence of a significant slowdown in the growth rate and argues that given this fact and the insensitivity of the distribution to feasible policy measures, the main problem facing the region at present is not how to improve the distribution but rather how the increase the growth rate.

Suggested Citation

  • Morley, Samuel A., 2001. "Distribution And Growth In Latin America In An Era Of Structural Reform," TMD Discussion Papers 16312, CGIAR, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:ags:iffp23:16312
    DOI: 10.22004/ag.econ.16312
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/16312/files/tm010066.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.16312?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:fth:inadeb:371 is not listed on IDEAS
    2. Miguel Székely & Marianne Hilgert, 1999. "What's Behind the Inequality We Measure: An Investigation Using Latin American Data," IDB Publications (Working Papers) 6458, Inter-American Development Bank.
    3. Lora, Eduardo & Márquez, Gustavo, 1998. "The Employment Problem in Latin America: Perceptions and Stylized Facts," IDB Publications (Working Papers) 1286, Inter-American Development Bank.
    4. Morley, Samuel A., 2000. "The effects of growth and economic reform on income distribution in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    5. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," The World Bank Economic Review, World Bank, vol. 11(1), pages 33-57, January.
    6. Marianne Hilgert & Miguel Székely, 1999. "Whats Behind the Inequality We Measure? An Investigation Using Latin American Data," LIS Working papers 234, LIS Cross-National Data Center in Luxembourg.
    7. Eduardo Lora & Gustavo Márquez, 1998. "The Employment Problem in Latin America: Perceptions and Stylized Facts," Research Department Publications 4114, Inter-American Development Bank, Research Department.
    8. Rojas-Suárez, Liliana & Birdsall, Nancy & Naím, Moisés & Lora, Eduardo & James, Estelle & Iglesias, Enrique V. & Gavin, Michael & Sabot, Richard H. & Lustig, Nora & Londoño, Juan Luis & Cortázar, René, 1998. "Beyond Tradeoffs: Market Reform and Equitable Growth in Latin America," IDB Publications (Books), Inter-American Development Bank, number 378, November.
    9. repec:idb:brikps:66098 is not listed on IDEAS
    10. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank, vol. 10(3), pages 565-591, September.
    11. Nancy Birdsall & Juan Luis Londoño, 1997. "Asset Inequality Does Matter: Lessons from Latin America," Research Department Publications 4066, Inter-American Development Bank, Research Department.
    12. Székely, Miguel & Hilgert, Marianne, 1999. "What's Behind the Inequality We Measure: An Investigation Using Latin American Data," IDB Publications (Working Papers) 1309, Inter-American Development Bank.
    13. Liliana Rojas-Suárez & Nancy Birdsall & Moisés Naím & Eduardo Lora & Estelle James & Enrique V. Iglesias & Michael Gavin & Richard H. Sabot & Nora Lustig & Juan Luis Londoño & René Cortázar & Carol Gr, 1998. "Beyond Tradeoffs: Market Reform and Equitable Growth in Latin America," IDB Publications (Books), Inter-American Development Bank, number 66098 edited by Nancy Birdsall & Richard H. Sabot & Carol Graham, February.
    14. Machado, Roberto & Morley, Samuel A. & Pettinato, Stefano, 1999. "Indexes of structural reform in Latin America," Series Históricas 7453, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    15. Miguel Székely & Nancy Birdsall & Jere R. Behrman, 2000. "Economics Reform and Wage Differentials in Latin America," Research Department Publications 4235, Inter-American Development Bank, Research Department.
    16. repec:fth:inadeb:344 is not listed on IDEAS
    17. Williamson, Jeffrey G, 1997. "Globalization and Inequality, Past and Present," The World Bank Research Observer, World Bank, vol. 12(2), pages 117-135, August.
    18. Nancy Birdsall & Juan Luis Londoño, 1997. "Asset Inequality Does Matter: Lessons from Latin America," IDB Publications (Working Papers) 6426, Inter-American Development Bank.
    19. Camargo, José Márcio & Neri, Marcelo Côrtes, 1999. "Structural reforms, macroeconomic fluctuations and income distribution in Brazil," Series Históricas 7499, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    20. Lora, Eduardo & Olivera, Mauricio, 1998. "Macro Policy and Employment Problems in Latin America," IDB Publications (Working Papers) 6077, Inter-American Development Bank.
    21. George Psacharopoulos & Samuel Morley & Ariel Fiszbein & Haeduck Lee & William C. Wood, 1995. "POVERTY AND INCOME INEQUALITY IN LATIN AMERICA DURING THE 1980s," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 41(3), pages 245-264, September.
    22. Miguel Székely & Nancy Birdsall & Jere R. Behrman, 2000. "Economics Reform and Wage Differentials in Latin America," Research Department Publications 4235, Inter-American Development Bank, Research Department.
    23. Robbins, Donald J., 1996. "Hos Hits Facts: Facts Win Evidence On Trade And Wages In The Developing World," Harvard Institute for International Development (HIID) Papers 294374, Harvard University, Kennedy School of Government.
    24. Eduardo Lora & Mauricio Olivera, 1998. "Macro Policy and Employment Problems in Latin America," Research Department Publications 4116, Inter-American Development Bank, Research Department.
    25. Altimir, Oscar & Beccaría, Luis Alberto, 1999. "El mercado de trabajo bajo el nuevo régimen económico en Argentina," Series Históricas 7476, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items 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. Morley, Samuel, 2001. "Distribution and growth in Latin America in an era of structural reform," TMD discussion papers 66, International Food Policy Research Institute (IFPRI).
    2. Morley, Samuel A., 2001. "The income distribution problem in Latin America and the Caribbean," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2274 edited by Eclac.
    3. Morley, Samuel A., 2000. "The effects of growth and economic reform on income distribution in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    4. 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.
    5. César P. Bouillon, 2000. "Inequality and Mexico's Labor Market after Trade Reform," IDB Publications (Working Papers) 53718, Inter-American Development Bank.
    6. Bouillon, César P., 2000. "Inequality and Mexico's Labor Market after Trade Reform," IDB Publications (Working Papers) 3782, Inter-American Development Bank.
    7. Bouillon, César P., 2000. "Returns to Education, Sector Premiums, and Male Wage Inequality in Mexico," IDB Publications (Working Papers) 3793, Inter-American Development Bank.
    8. César P. Bouillon, 2000. "Returns to Education, Sector Premiums, and Male Wage Inequality in Mexico," IDB Publications (Working Papers) 51038, Inter-American Development Bank.
    9. Pierre‐Richard Agénor, 2004. "Macroeconomic Adjustment and the Poor: Analytical Issues and Cross‐Country Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 18(3), pages 351-408, July.
    10. Timothy M. Smeeding, 2002. "Globalization, Inequality, and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study (LIS)," Center for Policy Research Working Papers 48, Center for Policy Research, Maxwell School, Syracuse University.
    11. Gustavo Márquez, 2000. "Labor Markets and Income Support: What Did We Learn from the Crises?," Research Department Publications 4219, Inter-American Development Bank, Research Department.
    12. Weller, Jürgen, 2001. "Economic reforms, growth and employment: labour markets in Latin America and the Caribbean," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2273 edited by Eclac.
    13. José Palma, 2015. "Globalizing Inequality: ‘Centrifugal’ and ‘Centripetal’ Forces at Work," Working Papers id:7199, eSocialSciences.
    14. Szekely, Miguel, 2003. "The 1990s in Latin America: Another Decade of Persistent Inequality, but with Somewhat Lower Poverty," Journal of Applied Economics, Universidad del CEMA, vol. 6(2), pages 1-26, November.
    15. Weller, Jürgen, 2000. "Employment trends in Latin America and the Caribbean during the 1990s," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    16. Gustavo Márquez, 2000. "Mercados laborales y apoyo del ingreso: ¿Qué hemos aprendido de las crisis?," Research Department Publications 4220, Inter-American Development Bank, Research Department.
    17. Dirk Willem te Velde, 2003. "Foreign Direct Investment and Income Inequality in Latin America," Documentos de trabajo 4/2003, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    18. Birdsall, Nancy & Galiani, Sebastián, 2001. "Comments," LSE Research Online Documents on Economics 123138, London School of Economics and Political Science, LSE Library.
    19. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 39-82, March.
    20. Astorga, Pablo, 2024. "Revealing the Diversity and Complexity behind Long-Term Income Inequality in Latin America: 1920–2011," The Journal of Economic History, Cambridge University Press, vol. 84(4), pages 1029-1065, December.

    More about this item

    Keywords

    ;

    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:ags:iffp23:16312. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.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.