Declining Inequality in Latin America in the 2000s : The Cases of Argentina, Brazil, and Mexico

Between 2000 and 2010, the Gini coefficient declined in 13 of 17 Latin American countries. The decline was statistically significant and robust to changes in the time interval, inequality measures, and data sources. In-depth country studies for Argentina, Brazil, and Mexico suggest two main phenomena underlie this trend: a fall in the premium to skilled labor and more progressive government transfers. The fall in the premium to skills resulted from a combination of supply, demand, and institutional factors. Their relative importance depends on the country.

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Bibliographic Details
Main Authors: Ortiz-Juarez, Eduardo, Lustig, Nora, Lopez-Calva, Luis F.
Language:English
en_US
Published: World Bank, Washington, DC 2012-10
Subjects:ACCOUNTING, ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET POLICIES, ADVANCED COUNTRIES, AGE GROUP, ANNUAL % CHANGE, ANTI-POVERTY, ANTI-POVERTY PROGRAMS, AVERAGE CHANGE, CAPITAL GAINS, CAPITAL MARKET, CASH TRANSFER PROGRAMS, CASH TRANSFERS, COLLECTIVE BARGAINING, COUNTERFACTUAL, DECLINING INEQUALITY, DECOMPOSITION ANALYSIS, DECOMPOSITION RESULTS, DEMAND-SIDE, DEMOGRAPHIC FACTORS, DEVELOPMENT ECONOMICS, DISCRIMINATION AGAINST WOMEN, EARNING, EARNINGS INEQUALITY, ECONOMIC GROWTH, ECONOMIC POLICY, ECONOMIC RECOVERY, ECONOMIC REVIEW, EDUCATIONAL ATTAINMENT, EDUCATIONAL LEVEL, EDUCATIONAL LEVELS, ELASTICITY, EMPLOYMENT GROWTH, EQUAL DISTRIBUTION, EQUAL WEIGHT, EQUALIZING EFFECT, EQUALIZING IMPACT, EXOGENOUS CHANGES, EXTREME POVERTY, FOOD PRICES, FREE TRADE, GDP, GINI COEFFICIENT, GLOBAL POVERTY, GROWTH RATE, GROWTH RATES, HIGH GROWTH, HOUSEHOLD HEADS, HOUSEHOLD INCOME, HOUSEHOLD INCOME INEQUALITY, HOUSEHOLD PER CAPITA INCOME, HOUSEHOLD SURVEYS, HUMAN CAPITAL, HUMAN DEVELOPMENT, INCIDENCE ANALYSIS, INCIDENCE OF POVERTY, INCOME, INCOME DISTRIBUTION, INCOME DISTRIBUTIONS, INCOME INEQUALITY, INCOME SOURCE, INCOME SOURCES, INCOMES, INEQUALITY, INEQUALITY CHANGES, INEQUALITY MEASURE, INEQUALITY MEASURES, INEQUALITY REDUCTION, INTERNATIONAL POVERTY LINE, INTERNATIONAL TRADE, JOB CREATION, JOBS, LABOR DEMAND, LABOR FORCE, LABOR INCOME, LABOR MARKET, LABOR MARKET INSTITUTIONS, LABOR MARKET POLICIES, LABOR MARKET SEGMENTATION, LABOR MARKETS, LABOR RELATIONS, LABOR SUPPLY, LABOR UNION, LABOR UNIONS, LABOR-INTENSIVE GROWTH, LABOUR, LABOUR MARKET, MARKET IMPERFECTIONS, MEASURING INEQUALITY, MINIMUM WAGE, MINIMUM WAGES, NEGATIVE IMPACT, NUTRITION, OPPORTUNITY COST, PENSIONS, PER CAPITA GROWTH, PER CAPITA INCOMES, PERSONAL INCOME, PERSONAL INCOME TAXES, POLICY CHANGES, POLICY DISCUSSIONS, POLICY RESEARCH, POOR, POOR FAMILIES, POOR GROWTH, POOR HOUSEHOLDS, POSITIVE EFFECT, POSITIVE IMPACT, POVERTY LINE, POVERTY MEASURES, POVERTY PROGRAMS, POVERTY REDUCTION, PRICE STABILIZATION, PRIMARY EDUCATION, PRIMARY SCHOOL, PRIVATE SECTOR, PRIVATE TRANSFERS, PRODUCTIVITY, PUBLIC SPENDING, PUBLIC TRANSFERS, REAL WAGES, REDISTRIBUTIVE IMPACT, REGRESSION ANALYSIS, RELATIVE DEMAND, RELATIVE IMPORTANCE, RELATIVE SUPPLY, RELATIVE WAGES, RENTS, RISING INEQUALITY, RISING WAGE INEQUALITY, RURAL, RURAL AREAS, RURAL WORKERS, SANITATION, SECONDARY SCHOOLING, SECTORAL COMPOSITION, SIGNIFICANCE LEVEL, SIMULATIONS, SKILL LEVEL, SKILL PREMIUM, SKILLED LABOR, SKILLED WORKERS, SOCIAL POLICIES, SOCIAL POLICY, SOCIAL SECURITY, SOCIAL SECURITY PROGRAMS, SOCIAL SPENDING, STATE-OWNED ENTERPRISES, STRUCTURAL ADJUSTMENT, STRUCTURAL ADJUSTMENT PROGRAMS, TARGETED TRANSFERS, TRADE LIBERALIZATION, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNION ACTIVITY, UNION MEMBERSHIP, UNSKILLED LABOR, UNSKILLED WORKERS, WAGE DIFFERENTIALS, WAGE DISTRIBUTION, WAGE GAP, WAGE STRUCTURE,
Online Access:http://documents.worldbank.org/curated/en/2000/01/16867190/declining-inequality-latin-america-2000s-cases-argentina-brazil-mexico-declining-inequality-latin-america-2000s-cases-argentina-brazil-mexico
https://hdl.handle.net/10986/12089
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Summary:Between 2000 and 2010, the Gini coefficient declined in 13 of 17 Latin American countries. The decline was statistically significant and robust to changes in the time interval, inequality measures, and data sources. In-depth country studies for Argentina, Brazil, and Mexico suggest two main phenomena underlie this trend: a fall in the premium to skilled labor and more progressive government transfers. The fall in the premium to skills resulted from a combination of supply, demand, and institutional factors. Their relative importance depends on the country.