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La desigualdad del ingreso en Uruguay entre 1986 y 2009

Author

Listed:
  • Guillermo Alves

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Verónica Amarante

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Gonzalo Salas

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Andrea Vigorito

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

The purpose of this study is to analyze the evolution of income inequality in Uruguay in 1986-2009 and its main driving forces. During 1986-1994 inequality remained almost unchanged, whearas it grew in 1994-2007 and startd to fall in 2007-2009. We carry out an inequality decomposition by income source which shows that the evolution of earning inequality and the inception of non contributory public transfers are the main explanatory factors of the evolution of inequality across the whole period. The inception of income transfer schemes, targeted towards the first income quintile contribute to explain the recent descent in inequality. In order to single out the main factors explaining the evolution of earnings inequality we carried out a micro simulation exercise. Results show that increasing returns to education were the main factor underlying this evolution. The recent decrease in inequality is also associated to the decrease in skill premia. At the same time, increasing employment rates and the reduction of the regional gap also had an equalizing effect. Meanwhile the scarce contribution of schooling in general and, specifically, in the recent descent in inequality poses a challenge for the design of educational policies. Our study also suggests that most of the recent reduction in inequality is related to the recent redistributive reforms such as increasing the value of minimum wages, centralized wage-setting mechanisms and the income tax. It is still too soon to assess whether this recent movement is a permanent trend. The analysis was based in the Uruguayan Household Surveys (Encuestas Continuas de Hogares) carried out by Instituto Nacional de Estadística.

Suggested Citation

  • Guillermo Alves & Verónica Amarante & Gonzalo Salas & Andrea Vigorito, 2012. "La desigualdad del ingreso en Uruguay entre 1986 y 2009," Documentos de Trabajo (working papers) 12-03, Instituto de Economía - IECON.
  • Handle: RePEc:ulr:wpaper:dt-03-12
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    File URL: http://www.iecon.ccee.edu.uy/download.php?len=es&id=286&nbre=dt-03-12.pdf&ti=application/pdf&tc=Publicaciones
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    References listed on IDEAS

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    6. Guillermo Alves & Rodrigo Arim & Gonzalo Salas & Andrea Vigorito, 2009. "Desigualdad salarial en uruguay, 1981-207," Documentos de Trabajo (working papers) 09-05, Instituto de Economía - IECON.
    7. Leonardo Gasparini & Guillermo Cruces & Leopoldo Tornarolli & Mariana Marchionni, 2009. "A Turning Point? Recent Developments on Inequality in Latin America and the Caribbean," CEDLAS, Working Papers 0081, CEDLAS, Universidad Nacional de La Plata.
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    Cited by:

    1. Amarante, Veronica & Vigorito, Andrea, 2011. "Uruguayâ..s Income Inequality and Political Regimes during 1981â..2010," WIDER Working Paper Series 094, World Institute for Development Economic Research (UNU-WIDER).
    2. Amarante, Véronica & Ferrando, Mery & Vigorito, Andrea, 2011. "School Attendance, Child Labor and Cash Transfer: An impact evaluation of PANES," PEP Policy Briefs 164618, Partnership for Economic Policy (PEP).
    3. Verónica Amarante & Rodrigo Arim & Mijail Yapor, 2016. "Decomposing inequality changes in Uruguay: the role of formalization in the labor market," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    4. Amarante, Verónica & Arim, Rodrigo & Yapor, Mijail, 2015. "Desigualdad e informalidad en el Uruguay," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 39655, May.
    5. -, 2016. "Hacia un desarrollo inclusivo: el caso del Uruguay," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 40494 edited by Cepal, May.
    6. Marcelo Bergolo & Fedora Carbajal, 2010. "Exploring the Urban-Rural Labor Income Gap in Uruguay: A Quantile Regression Decomposition," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 25(2), pages 133-168, Diciembre.

    More about this item

    Keywords

    Income inequality; Labor market; Returs to education; Transfers; Uruguay;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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