Decomposing the Recent Inequality Decline in Latin America
Over the past decade, 12 of 14 Latin American countries have experienced a reduction in inequality. Based on a series of counterfactual simulations, the observed changes in inequality are decomposed in order to identify the main determinants of inequality. In contrast to methods that focus on aggregate summary statistics, the method adopted in this paper generates counterfactual distributions, so that the analysis can account for changes related to demographics, occupation, labor earnings and transfers, pensions, and other nonlabor income sources. The results show that for the majority of countries in the sample, the most important contributor to the observed decline in inequality has been the relatively strong growth in labor earnings at the bottom of the income distribution. In particular, most of the reduction in inequality can be attributed to an increase in earnings per hour for the bottom of the income distribution. The paper also contributes to the literature on inequality in Latin America by providing the Shapley-Shorrocks value of this decomposition.
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dig-okr-10986169312024-08-08T14:13:29Z Decomposing the Recent Inequality Decline in Latin America Sanfelice, Viviane Azevedo, Joao Pedro Inchauste, Gabriela ACCOUNTING ADJUSTMENT PERIOD ANNUALIZED CHANGE CASH TRANSFER PROGRAMS COL COMMODITY COMMODITY PRICES COUNTERFACTUAL COUNTERFACTUALS DECLINING INEQUALITY DECOMPOSITION TECHNIQUES DEMAND-SIDE DEMOGRAPHIC DEMOGRAPHIC CHANGES DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES DIVIDEND DRIVERS ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC REVIEW EMPIRICAL EVIDENCE EMPIRICAL REGULARITIES EMPLOYMENT EQUALIZING EFFECT FEMALE LABOR FEMALE LABOR FORCE GDP GENDER DIMENSIONS GINI COEFFICIENT GROWTH RATE HARMONIZATION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME EFFECT INCOME INEQUALITY INCOME SOURCES INCOMES INCREASING INCOME INEQUALITY INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY REDUCTION INTERNATIONAL MARKETS LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR INCOME LABOR MARKET LABOR MARKETS LABOR SUPPLY MINIMUM WAGES OBSERVED CHANGES OBSERVED REDUCTIONS PATH DEPENDENCE PENSION PENSIONS PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY ISSUES POLICY RESEARCH POLITICAL ECONOMY POOR POVERTY DYNAMICS POVERTY MEASURES POVERTY OUTCOMES POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVITY PROGRAMS PUBLIC POLICY PUBLIC TRANSFERS QUALITY GROWTH REDUCING INEQUALITY RELATIVE DEMAND RELATIVE IMPORTANCE SIMULATIONS SKILLED LABOR SKILLED WORKERS SOCIAL TRANSFERS STRUCTURAL REFORMS TECHNOLOGICAL CHANGE TRANSFER PROGRAMS WAGE INEQUALITY Over the past decade, 12 of 14 Latin American countries have experienced a reduction in inequality. Based on a series of counterfactual simulations, the observed changes in inequality are decomposed in order to identify the main determinants of inequality. In contrast to methods that focus on aggregate summary statistics, the method adopted in this paper generates counterfactual distributions, so that the analysis can account for changes related to demographics, occupation, labor earnings and transfers, pensions, and other nonlabor income sources. The results show that for the majority of countries in the sample, the most important contributor to the observed decline in inequality has been the relatively strong growth in labor earnings at the bottom of the income distribution. In particular, most of the reduction in inequality can be attributed to an increase in earnings per hour for the bottom of the income distribution. The paper also contributes to the literature on inequality in Latin America by providing the Shapley-Shorrocks value of this decomposition. 2014-02-05T18:13:17Z 2014-02-05T18:13:17Z 2013-12 http://documents.worldbank.org/curated/en/2013/12/18607445/decomposing-recent-inequality-decline-latin-america https://hdl.handle.net/10986/16931 English en_US Policy Research Working Paper;No. 6715 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |
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Banco Mundial |
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Estados Unidos |
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US |
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Bibliográfico |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
ACCOUNTING ADJUSTMENT PERIOD ANNUALIZED CHANGE CASH TRANSFER PROGRAMS COL COMMODITY COMMODITY PRICES COUNTERFACTUAL COUNTERFACTUALS DECLINING INEQUALITY DECOMPOSITION TECHNIQUES DEMAND-SIDE DEMOGRAPHIC DEMOGRAPHIC CHANGES DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES DIVIDEND DRIVERS ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC REVIEW EMPIRICAL EVIDENCE EMPIRICAL REGULARITIES EMPLOYMENT EQUALIZING EFFECT FEMALE LABOR FEMALE LABOR FORCE GDP GENDER DIMENSIONS GINI COEFFICIENT GROWTH RATE HARMONIZATION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME EFFECT INCOME INEQUALITY INCOME SOURCES INCOMES INCREASING INCOME INEQUALITY INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY REDUCTION INTERNATIONAL MARKETS LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR INCOME LABOR MARKET LABOR MARKETS LABOR SUPPLY MINIMUM WAGES OBSERVED CHANGES OBSERVED REDUCTIONS PATH DEPENDENCE PENSION PENSIONS PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY ISSUES POLICY RESEARCH POLITICAL ECONOMY POOR POVERTY DYNAMICS POVERTY MEASURES POVERTY OUTCOMES POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVITY PROGRAMS PUBLIC POLICY PUBLIC TRANSFERS QUALITY GROWTH REDUCING INEQUALITY RELATIVE DEMAND RELATIVE IMPORTANCE SIMULATIONS SKILLED LABOR SKILLED WORKERS SOCIAL TRANSFERS STRUCTURAL REFORMS TECHNOLOGICAL CHANGE TRANSFER PROGRAMS WAGE INEQUALITY ACCOUNTING ADJUSTMENT PERIOD ANNUALIZED CHANGE CASH TRANSFER PROGRAMS COL COMMODITY COMMODITY PRICES COUNTERFACTUAL COUNTERFACTUALS DECLINING INEQUALITY DECOMPOSITION TECHNIQUES DEMAND-SIDE DEMOGRAPHIC DEMOGRAPHIC CHANGES DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES DIVIDEND DRIVERS ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC REVIEW EMPIRICAL EVIDENCE EMPIRICAL REGULARITIES EMPLOYMENT EQUALIZING EFFECT FEMALE LABOR FEMALE LABOR FORCE GDP GENDER DIMENSIONS GINI COEFFICIENT GROWTH RATE HARMONIZATION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME EFFECT INCOME INEQUALITY INCOME SOURCES INCOMES INCREASING INCOME INEQUALITY INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY REDUCTION INTERNATIONAL MARKETS LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR INCOME LABOR MARKET LABOR MARKETS LABOR SUPPLY MINIMUM WAGES OBSERVED CHANGES OBSERVED REDUCTIONS PATH DEPENDENCE PENSION PENSIONS PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY ISSUES POLICY RESEARCH POLITICAL ECONOMY POOR POVERTY DYNAMICS POVERTY MEASURES POVERTY OUTCOMES POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVITY PROGRAMS PUBLIC POLICY PUBLIC TRANSFERS QUALITY GROWTH REDUCING INEQUALITY RELATIVE DEMAND RELATIVE IMPORTANCE SIMULATIONS SKILLED LABOR SKILLED WORKERS SOCIAL TRANSFERS STRUCTURAL REFORMS TECHNOLOGICAL CHANGE TRANSFER PROGRAMS WAGE INEQUALITY |
| spellingShingle |
ACCOUNTING ADJUSTMENT PERIOD ANNUALIZED CHANGE CASH TRANSFER PROGRAMS COL COMMODITY COMMODITY PRICES COUNTERFACTUAL COUNTERFACTUALS DECLINING INEQUALITY DECOMPOSITION TECHNIQUES DEMAND-SIDE DEMOGRAPHIC DEMOGRAPHIC CHANGES DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES DIVIDEND DRIVERS ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC REVIEW EMPIRICAL EVIDENCE EMPIRICAL REGULARITIES EMPLOYMENT EQUALIZING EFFECT FEMALE LABOR FEMALE LABOR FORCE GDP GENDER DIMENSIONS GINI COEFFICIENT GROWTH RATE HARMONIZATION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME EFFECT INCOME INEQUALITY INCOME SOURCES INCOMES INCREASING INCOME INEQUALITY INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY REDUCTION INTERNATIONAL MARKETS LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR INCOME LABOR MARKET LABOR MARKETS LABOR SUPPLY MINIMUM WAGES OBSERVED CHANGES OBSERVED REDUCTIONS PATH DEPENDENCE PENSION PENSIONS PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY ISSUES POLICY RESEARCH POLITICAL ECONOMY POOR POVERTY DYNAMICS POVERTY MEASURES POVERTY OUTCOMES POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVITY PROGRAMS PUBLIC POLICY PUBLIC TRANSFERS QUALITY GROWTH REDUCING INEQUALITY RELATIVE DEMAND RELATIVE IMPORTANCE SIMULATIONS SKILLED LABOR SKILLED WORKERS SOCIAL TRANSFERS STRUCTURAL REFORMS TECHNOLOGICAL CHANGE TRANSFER PROGRAMS WAGE INEQUALITY ACCOUNTING ADJUSTMENT PERIOD ANNUALIZED CHANGE CASH TRANSFER PROGRAMS COL COMMODITY COMMODITY PRICES COUNTERFACTUAL COUNTERFACTUALS DECLINING INEQUALITY DECOMPOSITION TECHNIQUES DEMAND-SIDE DEMOGRAPHIC DEMOGRAPHIC CHANGES DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES DIVIDEND DRIVERS ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC REVIEW EMPIRICAL EVIDENCE EMPIRICAL REGULARITIES EMPLOYMENT EQUALIZING EFFECT FEMALE LABOR FEMALE LABOR FORCE GDP GENDER DIMENSIONS GINI COEFFICIENT GROWTH RATE HARMONIZATION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME EFFECT INCOME INEQUALITY INCOME SOURCES INCOMES INCREASING INCOME INEQUALITY INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY REDUCTION INTERNATIONAL MARKETS LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR INCOME LABOR MARKET LABOR MARKETS LABOR SUPPLY MINIMUM WAGES OBSERVED CHANGES OBSERVED REDUCTIONS PATH DEPENDENCE PENSION PENSIONS PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY ISSUES POLICY RESEARCH POLITICAL ECONOMY POOR POVERTY DYNAMICS POVERTY MEASURES POVERTY OUTCOMES POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVITY PROGRAMS PUBLIC POLICY PUBLIC TRANSFERS QUALITY GROWTH REDUCING INEQUALITY RELATIVE DEMAND RELATIVE IMPORTANCE SIMULATIONS SKILLED LABOR SKILLED WORKERS SOCIAL TRANSFERS STRUCTURAL REFORMS TECHNOLOGICAL CHANGE TRANSFER PROGRAMS WAGE INEQUALITY Sanfelice, Viviane Azevedo, Joao Pedro Inchauste, Gabriela Decomposing the Recent Inequality Decline in Latin America |
| description |
Over the past decade, 12 of 14 Latin
American countries have experienced a reduction in
inequality. Based on a series of counterfactual simulations,
the observed changes in inequality are decomposed in order
to identify the main determinants of inequality. In contrast
to methods that focus on aggregate summary statistics, the
method adopted in this paper generates counterfactual
distributions, so that the analysis can account for changes
related to demographics, occupation, labor earnings and
transfers, pensions, and other nonlabor income sources. The
results show that for the majority of countries in the
sample, the most important contributor to the observed
decline in inequality has been the relatively strong growth
in labor earnings at the bottom of the income distribution.
In particular, most of the reduction in inequality can be
attributed to an increase in earnings per hour for the
bottom of the income distribution. The paper also
contributes to the literature on inequality in Latin America
by providing the Shapley-Shorrocks value of this decomposition. |
| topic_facet |
ACCOUNTING ADJUSTMENT PERIOD ANNUALIZED CHANGE CASH TRANSFER PROGRAMS COL COMMODITY COMMODITY PRICES COUNTERFACTUAL COUNTERFACTUALS DECLINING INEQUALITY DECOMPOSITION TECHNIQUES DEMAND-SIDE DEMOGRAPHIC DEMOGRAPHIC CHANGES DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES DIVIDEND DRIVERS ECONOMIC EQUILIBRIUM ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC REVIEW EMPIRICAL EVIDENCE EMPIRICAL REGULARITIES EMPLOYMENT EQUALIZING EFFECT FEMALE LABOR FEMALE LABOR FORCE GDP GENDER DIMENSIONS GINI COEFFICIENT GROWTH RATE HARMONIZATION HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME EFFECT INCOME INEQUALITY INCOME SOURCES INCOMES INCREASING INCOME INEQUALITY INEQUALITY INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY REDUCTION INTERNATIONAL MARKETS LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR INCOME LABOR MARKET LABOR MARKETS LABOR SUPPLY MINIMUM WAGES OBSERVED CHANGES OBSERVED REDUCTIONS PATH DEPENDENCE PENSION PENSIONS PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY ISSUES POLICY RESEARCH POLITICAL ECONOMY POOR POVERTY DYNAMICS POVERTY MEASURES POVERTY OUTCOMES POVERTY REDUCTION PRIVATE TRANSFERS PRODUCTIVITY PROGRAMS PUBLIC POLICY PUBLIC TRANSFERS QUALITY GROWTH REDUCING INEQUALITY RELATIVE DEMAND RELATIVE IMPORTANCE SIMULATIONS SKILLED LABOR SKILLED WORKERS SOCIAL TRANSFERS STRUCTURAL REFORMS TECHNOLOGICAL CHANGE TRANSFER PROGRAMS WAGE INEQUALITY |
| author |
Sanfelice, Viviane Azevedo, Joao Pedro Inchauste, Gabriela |
| author_facet |
Sanfelice, Viviane Azevedo, Joao Pedro Inchauste, Gabriela |
| author_sort |
Sanfelice, Viviane |
| title |
Decomposing the Recent Inequality Decline in Latin America |
| title_short |
Decomposing the Recent Inequality Decline in Latin America |
| title_full |
Decomposing the Recent Inequality Decline in Latin America |
| title_fullStr |
Decomposing the Recent Inequality Decline in Latin America |
| title_full_unstemmed |
Decomposing the Recent Inequality Decline in Latin America |
| title_sort |
decomposing the recent inequality decline in latin america |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013-12 |
| url |
http://documents.worldbank.org/curated/en/2013/12/18607445/decomposing-recent-inequality-decline-latin-america https://hdl.handle.net/10986/16931 |
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AT sanfeliceviviane decomposingtherecentinequalitydeclineinlatinamerica AT azevedojoaopedro decomposingtherecentinequalitydeclineinlatinamerica AT inchaustegabriela decomposingtherecentinequalitydeclineinlatinamerica |
| _version_ |
1807157476782505984 |