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Uruguayâ..s Income Inequality and Political Regimes during 1981â..2010

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  • Amarante, Veronica
  • Vigorito, Andrea

Abstract

This study assesses the evolution of inequality in Uruguay during 1981-2010, considered as subperiods built on the basis of the main policy regimes observed: extreme right (1981-84), centre-right (1985-89), right (1990-2004), and centre-left (2005-10). Income inequality diminished during the restoration of democracy, but started to grow steadily in the mid-1990s and despite recent redistributive reforms, continued to grow, albeit modestly, until 2007. In 2008 inequality lessened, continuing this trend through 2009 and 2010.Trade liberalization, suppression of centralized wage-setting mechanisms, the drop in minimum wages and the lack of a social protection system oriented to the most deprived households explain the rise in inequality during the last decade. In a context of a stable macroeconomic system, the recent fall in inequality resulted from a reduction in labour income inequality and the introduction of noncontributory public transfers schemes.

Suggested Citation

  • 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).
  • Handle: RePEc:unu:wpaper:wp2011-94
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    File URL: http://www.wider.unu.edu/sites/default/files/wp2011-094.pdf
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    1. Cruces, Guillermo & Gasparini, Leonardo, 2011. "Inequality in Education: Evidence for Latin America," WIDER Working Paper Series 093, World Institute for Development Economic Research (UNU-WIDER).
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    4. Giovanni Andrea Cornia, 2010. "Income Distribution under Latin America's New Left Regimes," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 11(1), pages 85-114.
    5. Veronica Amarante & Rodrigo Arim & Gioia de Melo & Andrea Vigorito, 2010. "Family Allowances and Child School Attendance: An ex-ante Evaluation of Alternative Schemes in Uruguay," Working Papers PMMA 2010-07, PEP-PMMA.
    6. Gunther, Isabel & Grimm, Michael, 2007. "Measuring pro-poor growth when relative prices shift," Journal of Development Economics, Elsevier, vol. 82(1), pages 245-256, January.
    7. Carlos Casacuberta & Marcel Vaillant, 2002. "Trade and wages in Uruguay in the 1990’s," Documentos de Trabajo (working papers) 0902, Department of Economics - dECON.
    8. Alma Espino & Martín Leites & Alina Machado, 2009. "El aumento en la oferta laboral de las mujeres casadas en Uruguay," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, September.
    9. 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.
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    Cited by:

    1. -, 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.
    2. Gabriel Burdín & Fernando Esponda & Andrea Vigorito, 2014. "Inequality and Top Income in Uruguay: A Comparison between Household Surveys and Income Tax Micro-data," Working Papers 201401, World Inequality Lab.
    3. Buendía García, Luis & Sanabria Martín, Antonio, 2013. "Productive Structure, Political Cycle And Inequality: The Case Of Uruguay, 2004-2011," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 22(ex).
    4. Sandra Rodríguez, 2014. "Wage inequality in Uruguay: Technological change impact on occupational tasks," Documentos de Trabajo (working papers) 14-15, Instituto de Economía - IECON.
    5. Cruces Guillermo & Fields Gary S. & Jaume David & Viollaz Mariana, 2015. "The growth-employment-poverty nexus in Latin America in the 2000s: Uruguay country study," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    6. Schwarzer, H. & Tessier, Lou. & Gammage, Sarah., 2014. "Coordinación institucional y pisos de protección social : experiencias de América Latina: Argentina, Brasil, Chile, México, Uruguay," ILO Working Papers 994847013402676, International Labour Organization.
    7. Bruno Martorano, 2014. "The Impact of Uruguay's 2007 Tax Reform on Equity and Efficiency," Development Policy Review, Overseas Development Institute, vol. 32(6), pages 701-714, November.
    8. Gabriel Burdín & Fernando Esponda & Andrea Vigorito, 2014. "Inequality and top incomes in Uruguay: a comparison between household surveys and income tax micro-data," Commitment to Equity (CEQ) Working Paper Series 1321, Tulane University, Department of Economics.
    9. Schwarzer, H. & Tessier, Lou. & Gammage, Sarah., 2014. "Coordination institutionnelle et socle de protection sociale : Expériences en Amérique latine : Argentine, Brésil, Chili, Mexique, Uruguay," ILO Working Papers 994847043402676, International Labour Organization.
    10. Malena Arcidiácono, 2015. "Salario Mínimo y Distribución salarial: Evidencia para Argentina 2003 – 2013," CEDLAS, Working Papers 0192, CEDLAS, Universidad Nacional de La Plata.

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    Keywords

    inequality; Uruguay; transfers; wage-setting mechanisms; returns to education; political regimes;

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