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Declining Inequality in Latin America: Some Economics, Some Politics

Author

Listed:
  • Nancy Birdsall

    (Center for Global Development)

  • Nora Lustig

    (Department of Economics, Tulane University)

  • Darryl McLeod

    (Economics Department, Fordham University)

Abstract

Latin America is known to have income inequality among the highest in the world. That inequality has been invoked to explain low growth, poor education, macroeconomic volatility, and political instability. But new research shows that inequality in the region is falling. In this paper, we summarize recent findings on the decline in inequality across the region, analyze how the type of political regime (populist, social democratic, right of center) matters to the sustainability of the decline, and investigate the relationship between changes in inequality and changes in the size of the middle class in the region. We conclude with some questions about whether and how changes in income distribution and in middle-class economic power will affect the politics of distribution in the future.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Nancy Birdsall & Nora Lustig & Darryl McLeod, 2011. "Declining Inequality in Latin America: Some Economics, Some Politics," Working Papers 1120, Tulane University, Department of Economics.
    • Handle: RePEc:tul:wpaper:1120
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    References listed on IDEAS

    as
    1. Nora Lustig, 2000. "Crises and the Poor: Socially Responsible Macroeconomics," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2000), pages 1-30.
    2. Birdsall, Nancy & de la Torre, Augusto & Caicedo, Felipe Valencia, 2010. "The Washington consensus : assessing a damaged brand," Policy Research Working Paper Series 5316, The World Bank.
    3. Darryl McLeod & Nora Lustig, 2010. "Inequality and Poverty under Latin America's New Left Regimes," Fordham Economics Discussion Paper Series dp2010-13, Fordham University, Department of Economics.
    4. Michael A. Clemens, 2004. "The Long Walk to School: International education goals in historical perspective," Development and Comp Systems 0403007, University Library of Munich, Germany.
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    6. Leonardo Gasparini & Walter Sosa-Escudero & Mariana Marchionni & Sergio Olivieri, 2013. "Multidimensional poverty in Latin America and the Caribbean: new evidence from the Gallup World Poll," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(2), pages 195-214, June.
    7. Sebastian Edwards, 2009. "Latin America's Decline: A Long Historical View," NBER Working Papers 15171, National Bureau of Economic Research, Inc.
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    9. Jeffrey D. Sachs, 1989. "Social Conflict and Populist Policies in Latin America," NBER Working Papers 2897, National Bureau of Economic Research, Inc.
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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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