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

32 Pages Posted: 1 Mar 2013

See all articles by Nora Lustig

Nora Lustig

Tulane University

Luis Felipe López-Calva

World Bank

Eduardo Ortiz-Juarez

UNDP - Regional Bureau for Latin America and the Caribbean

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Date Written: October 11, 2012

Abstract

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.

Keywords: income inequality, skill premium, government

JEL Classification: D31, I24, H53, O15, O54

Suggested Citation

Lustig, Nora Claudia and Lopez-Calva, Luis Felipe and Ortiz-Juarez, Eduardo, Declining Inequality in Latin America in the 2000s: The Cases of Argentina, Brazil, and Mexico (October 11, 2012). Center for Global Development Working Paper No. 307, Available at SSRN: https://ssrn.com/abstract=2226538 or http://dx.doi.org/10.2139/ssrn.2226538

Nora Claudia Lustig (Contact Author)

Tulane University ( email )

6823 St Charles Ave
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Luis Felipe Lopez-Calva

World Bank ( email )

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Washington, DC 20433
United States

Eduardo Ortiz-Juarez

UNDP - Regional Bureau for Latin America and the Caribbean ( email )

One United Nations Plaza
New York, NY 10017
United States
2129065892 (Phone)

HOME PAGE: http://www.undp.org/rblac/

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