Does Inequality Harm Income Mobility and Growth? An Assessment of the Growth Impact of Income and Education Inequality in Paraguay 1992-2002
Latin America is the most unequal region of the world in terms of income or expenditure, as well as regarding other aspects of economic or social exclusion. The region suffered the lost decade of the nineteen eighties, and experienced a modest recovery in the nineteen nineties. In the nineteen nineties, most of the governments implemented stabilization politics, more or less close to the proposals of the Washington Consensus. Paraguay itself, however, neither suffered a debt crisis nor a mayor economic instability during the eighties, so the stabilization policies would not have been necessary or useful for the Paraguayan economy and business cycles in the nineties. Nevertheless, many of the macroeconomic policies applied in Paraguay during the nineties were close to the Washington Consensus. The most striking macroeconomic result of the decade was a per capita income decrease beginning in late 1995, hand in hand with a poverty increase after 1996. Given the persistently high levels of poverty incidence in Paraguay to date, understanding the determinants of growth at the household level in Paraguayan economy remains an important but under-researched field in economics. This appears to be particularly true for the question whether inequality has a positive or negative effect on economic growth, a question that is both fundamental in (development) economics and highly relevant for poverty reduction policies. Although the effect of inequality on growth has important implications for poverty (Bourguignon, 2004; Ravallion, 1997), empirical evidence on this link is virtually inexistent for Paraguay.
|Date of creation:||05 May 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 0049-551-39 81 72
Fax: 0049-551-39 81 73
Web page: http://www.iai.wiwi.uni-goettingen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chris Elbers & Jan Willem Gunning, 2004. "Transitional Growth and Income Inequality: Anything Goes," GE, Growth, Math methods 0409001, EconWPA, revised 08 Sep 2004.
- Ravallion, Martin, 1997.
"Can high-inequality developing countries escape absolute poverty?,"
Elsevier, vol. 56(1), pages 51-57, September.
- Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Policy Research Working Paper Series 1775, The World Bank.
- Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2005.
"Imputed welfare estimates in regression analysis,"
Journal of Economic Geography,
Oxford University Press, vol. 5(1), pages 101-118, January.
- Joel B. Slemrod, 1992.
"Taxation and Inequality: A Time-Exposure Perspective,"
in: Tax Policy and the Economy, Volume 6, pages 105-128
National Bureau of Economic Research, Inc.
- Joel Slemrod, 1992. "Taxation and Inequality: A Time-Exposure Perspective," NBER Working Papers 3999, National Bureau of Economic Research, Inc.
- Andersen, Lykke Eg, 2000. "Social Mobility in Latin America," Documentos de trabajo 3/2000, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
- Hassler, John & Rodríguez Mora, José Vicente, 1998.
"IQ, Social Mobility and Growth,"
CEPR Discussion Papers
1827, C.E.P.R. Discussion Papers.
- Hassler, J. & Rodriguez Mora, J.V., 1998. "IQ, Social Mobility and Growth," Papers 635, Stockholm - International Economic Studies.
- Hassler, John & Mora , José V. Rodríguez, 1998. "IQ, Social Mobility and Growth," Seminar Papers 635, Stockholm University, Institute for International Economic Studies.
- repec:ese:iserwp:2013-23 is not listed on IDEAS
- Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999.
"Inequality and Economic Growth: The Perspective of the New Growth Theories,"
Journal of Economic Literature,
American Economic Association, vol. 37(4), pages 1615-1660, December.
- Aghion, Philippe & Caroli, Eve & Garcia-Penalosa, Cecilia, 1999. "Inequality and economic growth: the perspective of the new growth theories," CEPREMAP Working Papers (Couverture Orange) 9908, CEPREMAP.
- Aghion, Philippe & Caroli, Eve & GarcÃa-PeÃ±alosa, Cecilia, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Scholarly Articles 12502063, Harvard University Department of Economics.
- Garcia-Penalosa, Cecilia & Aghion, Philippe & Caroli, Eve, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Economics Papers from University Paris Dauphine 123456789/10091, Paris Dauphine University.
- Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
- Birdsall, Nancy & Londono, Juan Luis, 1997. "Asset Inequality Matters: An Assessment of the World Bank's Approach to Poverty Reduction," American Economic Review, American Economic Association, vol. 87(2), pages 32-37, May.
- Galor, Oded, 2000. "Income distribution and the process of development," European Economic Review, Elsevier, vol. 44(4-6), pages 706-712, May.
- Markus Jäntti & Stephen P. Jenkins, 2013.
SOEPpapers on Multidisciplinary Panel Data Research
607, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990.
"The Allocation of Talent: Implications for Growth,"
NBER Working Papers
3530, National Bureau of Economic Research, Inc.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implicationsfor Growth," University of Chicago - George G. Stigler Center for Study of Economy and State 65, Chicago - Center for Study of Economy and State.
- Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
- Hentschel, Jesko, et al, 2000. "Combining Census and Survey Data to Trace the Spatial Dimensions of Poverty: A Case Study of Ecuador," World Bank Economic Review, World Bank Group, vol. 14(1), pages 147-65, January.
- Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
- repec:chb:bcchwp:03 is not listed on IDEAS
- Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996.
" Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics,"
Journal of Economic Growth,
Springer, vol. 1(3), pages 363-89, September.
- Lakshmi K. Raut, 1996. "Signalling equilibrium, Intergenerational mobility and long-run growth," GE, Growth, Math methods 9603002, EconWPA.
- Balisacan, Arsenio M. & Fuwa, Nobuhiko, 2003. "Growth, inequality and politics revisited: a developing-country case," Economics Letters, Elsevier, vol. 79(1), pages 53-58, April.
- Andrea Brandolini & Anthony B. Atkinson, 2001. "Promise and Pitfalls in the Use of "Secondary" Data-Sets: Income Inequality in OECD Countries As a Case Study," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 771-799, September.
- Ravallion, Martin, 1998. "Does aggregation hide the harmful effects of inequality on growth?," Economics Letters, Elsevier, vol. 61(1), pages 73-77, October.
- Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, 04.
When requesting a correction, please mention this item's handle: RePEc:got:iaidps:188. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Jaep)
If references are entirely missing, you can add them using this form.