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Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions

  • Florencia Lopez Boo


    (Department of Economics, University of Oxford)

From 1992 to 2001, despite its rapid economic growth during the early 1990s, Argentina experienced a period characterized by increasing income inequality and poverty. An axiomatically modified Datt-Ravallion decomposition, that separates changes in poverty rates into mean and inequality components, will illustrate how each of them has contributed to those changes. Contrary to the claims of much of the recent cross-country literature, income inequality does not appear stable in Argentina. Previous results are extended in two key ways. First, the empirical density function is used to calculate the inequality component, without assuming a particular functional form for the Lorenz curve. Second, both components are recomputed without the vaguely defined Datt-Ravallion residual, which improves interpretability.

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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 33.

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Length: 35 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2006-33
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  1. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  2. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
  3. Florencia Lopez Boo, 2006. "Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions," Working Papers 33, ECINEQ, Society for the Study of Economic Inequality.
  4. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
  5. Kolenikov, Stanislav & Shorrocks, Anthony, 2003. "A Decomposition Analysis of Regional Poverty in Russia," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
  7. Dasgupta, Partha & Ray, Debraj, 1987. "Inequality as a Determinant of Malnutrition and Unemployment: Policy," Economic Journal, Royal Economic Society, vol. 97(385), pages 177-88, March.
  8. Leonardo Gasparini & Mariana Marchionni & Walter Sosa Escudero, 2000. "Characterization of inequality changes through microeconometric decompositions. The case of Greater Buenos Aires," Department of Economics, Working Papers 025, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
  9. Kakwani, Nanak, 1980. "Functional Forms for Estimating the Lorenz Curve: A Reply," Econometrica, Econometric Society, vol. 48(4), pages 1063-64, May.
  10. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  11. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  12. Hongyi Li & Lyn Squire & Heng-fu Zou, 1998. "Explaining International and Intertemporal Variations in Income Inequality," CEMA Working Papers 73, China Economics and Management Academy, Central University of Finance and Economics.
  13. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
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