Inequality Stagnation in Latin America in the Aftermath of the Global Financial Crisis

25 Pages Posted: 10 Jan 2017

See all articles by Louise Cord

Louise Cord

World Bank

Oscar Barriga Cabanillas

World Bank; University of California, Davis

Leonardo Lucchetti

World Bank

Carlos Rodríguez-Castelán

World Bank

Liliana Sousa

World Bank

Daniel Valderrama

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: February 2017

Abstract

Between 2003 and 2010, Latin America experienced a solid record of economic growth, coupled with a notable reduction in income inequality. The regional Gini coefficient fell from 0.556 to 0.521 and declined in all 15 out of 17 countries in which frequent data are available. However, previous studies have warned about problems in the sustainability of the decline in income inequality and this study presents evidence of stagnation on this front between 2010 and 2013. The results are robust to various measures of income inequality, but differ across the region. While largely attributable to the recovery from the global financial crisis in Mexico and some countries in Central America, the results are also supported by the demonstrated slowdown in inequality reduction in other countries, including Brazil, Ecuador and Bolivia.

Suggested Citation

Cord, Louise and Cabanillas, Oscar Barriga and Cabanillas, Oscar Barriga and Lucchetti, Leonardo and Rodriguez-Castelan, Carlos and Sousa, Liliana and Valderrama, Daniel, Inequality Stagnation in Latin America in the Aftermath of the Global Financial Crisis (February 2017). Review of Development Economics, Vol. 21, Issue 1, pp. 157-181, 2017, Available at SSRN: https://ssrn.com/abstract=2896478 or http://dx.doi.org/10.1111/rode.12260

Louise Cord (Contact Author)

World Bank ( email )

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Oscar Barriga Cabanillas

World Bank ( email )

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University of California, Davis ( email )

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Leonardo Lucchetti

World Bank ( email )

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Carlos Rodriguez-Castelan

World Bank ( email )

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Liliana Sousa

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Daniel Valderrama

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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