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Spatial Income Inequality in Chile and the Rol of Spatial Labor Sorting

  • Susana Katherine Chacón Espejo

    ()

    (Master in Regional Sciences - Department of Economics, Universidad Católica del Norte - Chile)

  • Dusan Paredes Araya

    ()

    (IDEAR - Department of Economics, Universidad Católica del Norte - Chile)

The spatial income inequality in Latin American countries is a recent academic affair. Particularly, the case of Chile highlights around the world because it has one of the highest individual and spatial inequality rates. This article analyzes the spatial income inequality in Chile during 1992 2011 evaluating the role of the spatial labor sorting through multilevel models. The findings show that human capital doesn't allocate randomly across the space but its spatial concentration at the biggest urban centers impacts significantly the income inequality between counties. These findings motivate the discussion about spatial dimension of the inequality and suggest that policymakers should consider ways to spread human capital throughout the nation as an alternative to reduce spatial inequality.

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File URL: https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2013-15.pdf
File Function: First version, 2013
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Paper provided by Universidad Catolica del Norte, Chile, Department of Economics in its series Documentos de Trabajo en Economia y Ciencia Regional with number 46.

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Length: 39 pages
Date of creation: Apr 2013
Date of revision: Apr 2013
Handle: RePEc:cat:dtecon:dt201315
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