What Drives Differences in Inequality Across Countries?

44 Pages Posted: 21 Apr 2011

See all articles by Miguel Székely

Miguel Székely

Center for Education and Social Studies

Marianne Hilgert

Inter-American Development Bank (IDB)

Date Written: November 2000

Abstract

This paper presents microeconomic simulation techniques to examine what drives differences in inequality across countries. The simulation decomposes cross-country inequality differences into the importance of individual decisions, such as fertility, mating, labor force participation, and household structure, while at the same time including information on the importance of different income sources. The decomposition is applied to household survey data from 35 countries from 6 regions in the world. The empirical results provide insights into the transmission mechanisms through which inequality is generated.

Suggested Citation

Székely, Miguel and Hilgert, Marianne, What Drives Differences in Inequality Across Countries? (November 2000). IDB Working Paper No. 369, Available at SSRN: https://ssrn.com/abstract=1817238 or http://dx.doi.org/10.2139/ssrn.1817238

Miguel Székely (Contact Author)

Center for Education and Social Studies ( email )

Mexico City
Mexico

Marianne Hilgert

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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