Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81076
Authors: 
Cornia, Giovanni Andrea
Year of Publication: 
2012
Series/Report no.: 
WIDER Working Paper 2012/09
Abstract: 
The paper reviews the steady and widespread decline in income inequality which has taken place in most of Latin America over 2002-10 and which - if continued for another 2-3 years - would reduce the average regional income inequality to pre-liberalization levels. The paper then focuses on the factors, which may explain such inequality decline. A review of the literature and an econometric test indicate that a few complementary factors played an important role in this regard, including a drop in the skill premium following a rapid expansion of secondary education, and the adoption of a new development model by a growing number of left-of-centre governments which emphasizes fiscally-prudent but more equitable macroeconomic, tax, social expenditure and labour policies. For the region as a whole, improvements in terms of trade, migrant remittances, FDI and world growth playeda less important role than expected although their impact was perceptible in countries where such transactions were sizeable.
Subjects: 
income inequality
human capital inequality
policy regimes
external conditions
Latin America
JEL: 
D31
E6
H53
I28
I38
ISBN: 
978-929-230-472-0
Document Type: 
Working Paper

Files in This Item:
File
Size
467.74 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.