Inequality, poverty, and the Kuznets curve In Spain, 1850-2000
In Spain, inequality evolution fits a Kuznets curve. World wars increased inequality but had non-permanent effects. Progressive taxation had no impact until 1980. This picture is at odds with Atkinson, Piketty, Saez, and associates’ depiction of western countries. Stolper-Samuelson forces only partially explain inequality trends. A substantial fall in absolute poverty resulted from growth but also from inequality reduction in the Interwar and late 1950s. Rising inequality and extreme poverty were not at the roots of Spain’s Civil War. In the Golden Age, inequality contraction and absolute poverty eradication represent a major departure from Latin America’s performance while matches OECD’s.
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