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Income Distribution in Uruguay: The Effects of Economic and Institutional Reforms

U of Uruguay Economics Working Paper No. 3/2001

22 Pages Posted: 14 Sep 2001  

Maximo Rossi

Departamento de Economía, dECON; Universidad de la Republica - Department of Economics

Carlos Gradín

University of Vigo

Date Written: September 2001

Abstract

This paper is concerned with distributive aspects of crucial economic and institutional reforms experienced by earners of several income sources in Uruguay after the late eighties. These reforms involved both the labor market and the pensions system, and we provide empirical evidence about the different way they affected the distribution of income. The distribution of income across all earners at the end of the eighties exhibited two well-distinguished poles, each associated with one income source. This bimodality diminished with time during the nineties due to the general improvement in retirement pensions, and polarization by income sources. In the same period we find in the case of labor earnings a net transfer of population mass from the middle of the distribution to both extremes, which results in increasing polarization within this income source.

Keywords: Income distribution, wages, polarization

JEL Classification: D33, D31, I38

Suggested Citation

Rossi, Maximo and Gradín, Carlos, Income Distribution in Uruguay: The Effects of Economic and Institutional Reforms (September 2001). U of Uruguay Economics Working Paper No. 3/2001. Available at SSRN: https://ssrn.com/abstract=282954 or http://dx.doi.org/10.2139/ssrn.282954

Maximo Rossi (Contact Author)

Universidad de la Republica - Department of Economics ( email )

Constituyente 1502 Piso 6º
Montevideo, 11200
Uruguay
+598 2 4106449 (Phone)
+598 2 4106450 (Fax)

HOME PAGE: http://decon.edu.uy/~mito/pagina

Departamento de Economía, dECON ( email )

Facultad de Ciencias Sociales
Jose E. Rodo 1854
Montevideo 11200, 11200
Uruguay
59824106449 (Phone)
59824106450 (Fax)

HOME PAGE: http://Http://www.decon.edu.uy/~mito

Carlos Manuel Gradín Lago

University of Vigo ( email )

As Lagoas Marcosende s/n
Departmento de Economia Aplicada
36200 Vigo
Spain
+34 986 812514 (Phone)
+34 986 812401 (Fax)

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