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Chronicle of a Deceleration Foretold: Income inequality in Latin America in the 2010s

Listed author(s):
  • Leonardo Gasparini

    (CEDLAS - UNLP y CONICET)

  • Guillermo Cruces

    (CEDLAS - UNLP y CONICET)

  • Leopoldo Tornarolli

    (CEDLAS - UNLP y CONICET)

After a decade of strong progress toward the goal of reducing the high levels of income disparities, there are clear signs of a deceleration in the pace of inequality reduction in Latin America. This paper argues that the deceleration is the result of two set of reasons. First, several of the driving factors of the fall in inequality in the 2000s have lost strength, due to “natural” motives; and second, the external conditions faced by the Latin American economies have worsened in the early 2010s, making further reductions in inequality more difficult.

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File URL: http://cedlas.econo.unlp.edu.ar/archivos_upload/doc_cedlas198.pdf
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Paper provided by CEDLAS, Universidad Nacional de La Plata in its series CEDLAS, Working Papers with number 0198.

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Length: 21 pages
Date of creation: May 2016
Handle: RePEc:dls:wpaper:0198
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Web page: http://cedlas.econo.unlp.edu.ar/

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  1. Lustig, Nora & Lopez-Calva, Luis F. & Ortiz-Juarez, Eduardo, 2013. "Deconstructing the decline in inequality in Latin America," Policy Research Working Paper Series 6552, The World Bank.
  2. Cornia, Giovanni Andrea, 2014. "Income inequality in Latin America. Recent decline and prospects for its further reduction," Macroeconomía del Desarrollo 149, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  3. Galiani, Sebastian & Sanguinetti, Pablo, 2003. "The impact of trade liberalization on wage inequality: evidence from Argentina," Journal of Development Economics, Elsevier, vol. 72(2), pages 497-513, December.
  4. Mariano Bosch & Marco Manacorda, 2010. "Minimum Wages and Earnings Inequality in Urban Mexico," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 128-149, October.
  5. David McKenzie & Hillel Rapoport, 2010. "Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 811-821, November.
  6. Cord, Louise & Barriga Cabanillas, Oscar & Lucchetti, Leonardo & Rodriguez-Castelan, Carlos & Sousa, Liliana D. & Valderrama, Daniel, 2014. "Inequality stagnation in Latin America in the aftermath of the global financial crisis," Policy Research Working Paper Series 7146, The World Bank.
  7. Azevedo, Joao Pedro & Inchauste, Gabriela & Sanfelice, Viviane, 2013. "Decomposing the recent inequality decline in Latin America," Policy Research Working Paper Series 6715, The World Bank.
  8. Augusto de la Torre & Samuel Pienknagura & Eduardo Levy Yeyati, "undated". "Latin America and the Caribbean as Tailwinds Recede : In Search of Higher Growth, LAC Semiannual Report, April 2013," World Bank Other Operational Studies 13266, The World Bank.
  9. David De Ferranti & Guillermo E. Perry & Francisco H.G. Ferreira & Michael Walton, 2004. "Inequality in Latin America : Breaking with History?," World Bank Publications, The World Bank, number 15009.
  10. Bilge Erten, 2012. "Super-cycles of commodity prices since the mid-ninteenth century," Working Papers 110, United Nations, Department of Economics and Social Affairs.
  11. Leonardo Gasparini & Guillero Cruces & Leopoldo Tornarolli, 2011. "Recent Trends In Income Inequality In Latin America," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Spring 20), pages 147-201, January.
  12. Guillermo Cruces & Gary Fields & David Jaume & Mariana Viollaz, 2015. "The growth-employment-poverty nexus in Latin America in the 2000s: Cross-country analysis," WIDER Working Paper Series 110, World Institute for Development Economic Research (UNU-WIDER).
  13. 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.
  14. Pablo Acosta & Leonardo Gasparini, 2007. "Capital Accumulation, Trade Liberalization, and Rising Wage Inequality: The Case of Argentina," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 793-812.
  15. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
  16. Maurizio, Roxana, 2014. "El impacto distributivo del salario mínimo en la Argentina, el Brasil, Chile y el Uruguay," Políticas Sociales 194, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  17. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
  18. Erten, Bilge & Ocampo, José Antonio, 2013. "Super Cycles of Commodity Prices Since the Mid-Nineteenth Century," World Development, Elsevier, vol. 44(C), pages 14-30.
  19. Francois Bourguignon & Francisco H.G. Ferreira & Nora Lustig, 2005. "The Microeconomics of Income Distribution Dynamics in East Asia and Latin America," World Bank Publications, The World Bank, number 14844.
  20. Jere R. Behrman & Nancy Birdsall & Miguel Székely, 2007. "Economic Policy Changes and Wage Differentials in Latin America," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 57-97.
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