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What Drives Differences in Inequality Across Countries?

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  • Miguel Székely
  • Marianne Hilgert

Abstract

This paper presents microeconomic simulation techniques to examine what drives differences in inequality across countries. The simulation decomposes cross-country inequality differences into the importance of individual decisions, such as fertility, mating, labor force participation, and household structure, while at the same time including information on the importance of different income sources. The decomposition is applied to household survey data from 35 countries from 6 regions in the world. The empirical results provide insights into the transmission mechanisms through which inequality is generated.

Suggested Citation

  • Miguel Székely & Marianne Hilgert, 2000. "What Drives Differences in Inequality Across Countries?," Research Department Publications 4243, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:4243
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    File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=WP-439&pub_file_name=pubWP-439.pdf
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    References listed on IDEAS

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    Cited by:

    1. Leonardo Gasparini & Francisco Haimovich & Hernán Winkler, 2006. "Distribución del Ingreso en América Latina: Explorando las Diferencias entre Países," CEDLAS, Working Papers 0034, CEDLAS, Universidad Nacional de La Plata.
    2. T. H. Gindling, 2003. "La Desigualdad En América Central Durante Los Años Noventa," UMBC Economics Department Working Papers 03-109, UMBC Department of Economics.
    3. Francisco Haimovich, 2010. "Distribucion del Ingreso en América Latina: Caracterización de las Diferencias entre Países," Department of Economics, Working Papers 080, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.

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