Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/189544 
Year of Publication: 
2007
Series/Report no.: 
Development Research Working Paper Series No. 09/2007
Publisher: 
Institute for Advanced Development Studies (INESAD), La Paz
Abstract: 
This paper presents some new evidence on income inequality in Latin America over the period 1980-1999, examining in particular the relationship between corruption, privatisation and inequality. Using a panel data methodology, we find that a reduction in corruption is associated with a rise in inequality. This suggests that while privatisation removes industries from government influence and government corruption, it worsens income inequality as new owners strive for efficiency and profits. The paper highlights the fact that structural reform policies aimed primarily at achieving positive and increasing growth rates do not adequately address the income distribution problem.
Subjects: 
Población
income inequality
corruption
privatisation
panel data
Latin America
instrumental variables.
JEL: 
O15
O54
Document Type: 
Working Paper

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