Exploring the Relationship Between Business Elite Networks and Income Inequality in Latin American Countries
28 Pages Posted: 13 Jul 2018
Date Written: June 22, 2018
Although the cohesion of business elites has been associated with income concentration, few studies have in-depth investigated the role of business elite networks in macro-social issues such as economic inequality. This research explores the relationship between business elite networks and income inequality in several Latin American countries. To do so, this paper 1) examine business elite networks applying a network analysis of interlocking directorates, and 2) establishes the link and complementarities between the level of cohesion of business elite networks and income inequality. Results show that where business elite formed cohesive networks and economy was export-oriented, social protection programs were more inclusive, and income inequality levels were lower. Business networking can have an unexpected “equalizing” effect on society.
Keywords: Business Elites, Elite Networks, Income Inequality, Interlocking Directorates, Latin America
JEL Classification: D85
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