we tend to focus on what's going wrong – good to see something about what's going right
Melissa Raven
Research Fellow
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From: Equity, Health & Human Development [mailto:[log in to unmask]] On Behalf Of Ruggiero, Mrs. Ana Lucia (WDC)
Sent: Wednesday, 7 November 2012 8:22 AM
To: [log in to unmask]
Subject: [EQ] Declining Inequality in Latin America in the 2000s The Cases of Argentina, Brazil, and Mexico
Declining Inequality in Latin America in the 2000s
The Cases of Argentina, Brazil, and Mexico
Nora Lustig, Tulane University
Luis F. Lopez-Calva, The World Bank
Eduardo Ortiz-Juarez, UNDP, Regional Bureau for Latin America and the Caribbean
The World Bank - Latin America and the Caribbean Region - Poverty, Equity and Gender Unit
October 2012 WPS6248
Available online PDF [28p.] at: http://bit.ly/TuzJ84
“…..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…”
“……What factors are behind the decline in inequality in Latin America in the 2000s? Here we examine the role played by demand and supply of labor by skill, institutional factors such as minimum wages and unionization rates, and government transfers in accounting for changes in inequality in the three largest (measured by GDP) countries in Latin America: Argentina (urban), Brazil and Mexico.
The three countries analyzed in this paper can be considered a representative sample (not in the statistical sense, but in terms of their characteristics) of middle-income countries in Latin America which have experienced a reduction in income inequality over the past decade. ….
The paper is organized as follows.
Section 1 Includes detailed country narratives that delve into the determinants of inequality changes.
Section 2 A syntheses of the main findings
Section 3 concludes. …”
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