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Market income inequality, left-wing political parties, and redistribution in Latin America

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  • Branko MILANOVIC

Abstract

The paper uses household-level data from more than 200 household income surveys from 20 Latin American and Caribbean countries to explore the (revised) median voter hypothesis and the political determinants of the recent decrease of Latin American inequality. We find that more unequal market-income countries, and greater market-income inequality within a given country, are associated with greater pro-poor redistribution, although such redistribution is rather weak in Latin America compared to the economically advanced countries. We also find that more pro-left political orientation of national legislatures has been associated with greater redistribution. We thus argue that there are political roots to the recent decrease of inequality in Latin America.

Suggested Citation

  • Branko MILANOVIC, 2019. "Market income inequality, left-wing political parties, and redistribution in Latin America," Working Paper cd1121c5-2962-4233-85cc-c, Agence française de développement.
    • Handle: RePEc:avg:wpaper:en9703
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    File URL: https://www.afd.fr/sites/afd/files/2019-06-04-57-40/market-income-inequality-latin-america.pdf
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Market income inequality, left-wing political parties, and redistribution in Latin America
      by maximorossi in NEP-LTV blog on 2020-06-04 20:05:42

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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. Giovanni Andrea Cornia, 2021. "Latin America's Income Inequality Under five Political Regimes, 1870-2018," Working Papers - Economics wp2021_12.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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    Keywords

    Amérique latine;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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