Fifteen Years of Inequality in Latin America : How Have Labor Markets Helped?
Household income inequality has declined in Latin America in the past decades, contributing significantly to poverty reduction in the region. Although available evidence shows that changes in the labor income are among the main factors behind these...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/03/17428963/fifteen-years-inequality-latin-america-labor-markets-helped-fifteen-years-inequality-latin-america-labor-markets-helped http://hdl.handle.net/10986/13183 |
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okr-10986-13183 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADJUSTMENT PROGRAMS AVERAGE RATE CASH TRANSFER PROGRAMS COUNTERFACTUAL CRISES CROSS-SECTIONAL DATA DECLINING INEQUALITY DECLINING POVERTY DECOMPOSITION RESULTS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISPERSION OF THE DISTRIBUTION DRIVERS EARNINGS INEQUALITY ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC SHOCKS EDUCATIONAL ATTAINMENT EMPLOYMENT EQUALIZING EFFECT EQUITABLE DISTRIBUTION FEMALE LABOR FEMALE LABOR FORCE GDP GINI COEFFICIENT GROUP INEQUALITY GROWTH RATE HIGH INEQUALITY HISTORICAL PERSPECTIVE HOUSEHOLD INCOME HOUSEHOLD INCOME INEQUALITY HOUSEHOLD SURVEY HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INCOME SOURCE INCOME SOURCES INCREASING INEQUALITY INEQUALITY INEQUALITY CHANGES INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY REDUCTION INEQUALITY TRENDS INFORMAL SECTOR INFORMAL SECTOR WORKERS INTERNATIONAL COMPARISONS LABOR FORCE LABOR FORCE PARTICIPATION LABOR INCOME LABOR MARKET LABOR MARKET EXPERIENCE LABOR MARKETS LABOR UNIONS MALE WORKERS MARKET INCOME MATHEMATICS MEAN VALUE NEGATIVE SIGN NET EFFECT OBSERVED CHANGES OCCUPATIONS PENSIONS PERSISTENT INEQUALITY POLICY DISCUSSIONS POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POOR POPULATION SHARE POVERTY CHANGES POVERTY GAP POVERTY HEADCOUNT POVERTY RATE POVERTY REDUCTION PREVIOUS RESULTS PRICE CHANGES PROGRAMS REDISTRIBUTIVE EFFECTS REDUCING INEQUALITY REDUCING POVERTY REGIONAL DIFFERENCES REGIONAL LEVEL RELATIVE DEMAND RELATIVE SUPPLY RESIDUAL TERM SIMULATIONS SKILL GROUPS SKILL LEVEL SKILL PREMIUM SKILLED LABOR SKILLED WORKERS SOCIAL SAFETY SOCIAL SAFETY NETS STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL REFORMS UNSKILLED LABOR UNSKILLED WORKERS WAGE DISPERSION WAGE GAP WAGE INEQUALITY WAGES WOMEN WORKERS WORKER YOUNG WORKERS |
| spellingShingle |
ADJUSTMENT PROGRAMS AVERAGE RATE CASH TRANSFER PROGRAMS COUNTERFACTUAL CRISES CROSS-SECTIONAL DATA DECLINING INEQUALITY DECLINING POVERTY DECOMPOSITION RESULTS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISPERSION OF THE DISTRIBUTION DRIVERS EARNINGS INEQUALITY ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC SHOCKS EDUCATIONAL ATTAINMENT EMPLOYMENT EQUALIZING EFFECT EQUITABLE DISTRIBUTION FEMALE LABOR FEMALE LABOR FORCE GDP GINI COEFFICIENT GROUP INEQUALITY GROWTH RATE HIGH INEQUALITY HISTORICAL PERSPECTIVE HOUSEHOLD INCOME HOUSEHOLD INCOME INEQUALITY HOUSEHOLD SURVEY HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INCOME SOURCE INCOME SOURCES INCREASING INEQUALITY INEQUALITY INEQUALITY CHANGES INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY REDUCTION INEQUALITY TRENDS INFORMAL SECTOR INFORMAL SECTOR WORKERS INTERNATIONAL COMPARISONS LABOR FORCE LABOR FORCE PARTICIPATION LABOR INCOME LABOR MARKET LABOR MARKET EXPERIENCE LABOR MARKETS LABOR UNIONS MALE WORKERS MARKET INCOME MATHEMATICS MEAN VALUE NEGATIVE SIGN NET EFFECT OBSERVED CHANGES OCCUPATIONS PENSIONS PERSISTENT INEQUALITY POLICY DISCUSSIONS POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POOR POPULATION SHARE POVERTY CHANGES POVERTY GAP POVERTY HEADCOUNT POVERTY RATE POVERTY REDUCTION PREVIOUS RESULTS PRICE CHANGES PROGRAMS REDISTRIBUTIVE EFFECTS REDUCING INEQUALITY REDUCING POVERTY REGIONAL DIFFERENCES REGIONAL LEVEL RELATIVE DEMAND RELATIVE SUPPLY RESIDUAL TERM SIMULATIONS SKILL GROUPS SKILL LEVEL SKILL PREMIUM SKILLED LABOR SKILLED WORKERS SOCIAL SAFETY SOCIAL SAFETY NETS STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL REFORMS UNSKILLED LABOR UNSKILLED WORKERS WAGE DISPERSION WAGE GAP WAGE INEQUALITY WAGES WOMEN WORKERS WORKER YOUNG WORKERS Azevedo, João Pedro Dávalos, María Eugenia Diaz-Bonilla, Carolina Atuesta, Bernardo Castañeda, Raul Andres Fifteen Years of Inequality in Latin America : How Have Labor Markets Helped? |
| geographic_facet |
Latin America & Caribbean |
| relation |
Policy Research Working Paper;No. 6384 |
| description |
Household income inequality has declined
in Latin America in the past decades, contributing
significantly to poverty reduction in the region. Although
available evidence shows that changes in the labor income
are among the main factors behind these inequality trends,
few studies have analyzed more closely the labor market
dynamics that have led to a decline in total income
inequality in some countries, but also to an increase in
others. Using household survey data for a sample of 15
countries in Latin America from 1995 to 2010, this paper
uses an extension of the Juhn-Murphy-Pierce methodology to
decompose changes in labor income inequality (hourly wages)
into a quantity effect (capturing changes in the
distribution of workers' skills), price effect
(reflecting returns to skills), and unobservables effect
(other components, within skill groups, affecting labor
income). The results show that falling returns to skills for
both education and experience is, on average, driving the
decline in labor income inequality in Latin America. The
quantity effect, in turn, has contributed little to
inequality reduction, mostly attributable to a larger
dispersion in years of experience, possibly linked to the
region's demographic transition and to significant
increases in female labor force participation. Additional
findings show that wage inequality, still high in the
region, is coupled with inequality in terms of hours worked.
The paper complements the existing literature by presenting
separate results for males and females, as well as formal
and informal sector workers as an attempt to control for
secular shifts in these characteristics. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Azevedo, João Pedro Dávalos, María Eugenia Diaz-Bonilla, Carolina Atuesta, Bernardo Castañeda, Raul Andres |
| author_facet |
Azevedo, João Pedro Dávalos, María Eugenia Diaz-Bonilla, Carolina Atuesta, Bernardo Castañeda, Raul Andres |
| author_sort |
Azevedo, João Pedro |
| title |
Fifteen Years of Inequality in Latin America : How Have Labor Markets Helped? |
| title_short |
Fifteen Years of Inequality in Latin America : How Have Labor Markets Helped? |
| title_full |
Fifteen Years of Inequality in Latin America : How Have Labor Markets Helped? |
| title_fullStr |
Fifteen Years of Inequality in Latin America : How Have Labor Markets Helped? |
| title_full_unstemmed |
Fifteen Years of Inequality in Latin America : How Have Labor Markets Helped? |
| title_sort |
fifteen years of inequality in latin america : how have labor markets helped? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2013/03/17428963/fifteen-years-inequality-latin-america-labor-markets-helped-fifteen-years-inequality-latin-america-labor-markets-helped http://hdl.handle.net/10986/13183 |
| _version_ |
1764422916046323712 |
| spelling |
okr-10986-131832021-04-23T14:03:07Z Fifteen Years of Inequality in Latin America : How Have Labor Markets Helped? Azevedo, João Pedro Dávalos, María Eugenia Diaz-Bonilla, Carolina Atuesta, Bernardo Castañeda, Raul Andres ADJUSTMENT PROGRAMS AVERAGE RATE CASH TRANSFER PROGRAMS COUNTERFACTUAL CRISES CROSS-SECTIONAL DATA DECLINING INEQUALITY DECLINING POVERTY DECOMPOSITION RESULTS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISPERSION OF THE DISTRIBUTION DRIVERS EARNINGS INEQUALITY ECONOMIC GROWTH ECONOMIC REVIEW ECONOMIC SHOCKS EDUCATIONAL ATTAINMENT EMPLOYMENT EQUALIZING EFFECT EQUITABLE DISTRIBUTION FEMALE LABOR FEMALE LABOR FORCE GDP GINI COEFFICIENT GROUP INEQUALITY GROWTH RATE HIGH INEQUALITY HISTORICAL PERSPECTIVE HOUSEHOLD INCOME HOUSEHOLD INCOME INEQUALITY HOUSEHOLD SURVEY HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME INEQUALITY INCOME SOURCE INCOME SOURCES INCREASING INEQUALITY INEQUALITY INEQUALITY CHANGES INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY REDUCTION INEQUALITY TRENDS INFORMAL SECTOR INFORMAL SECTOR WORKERS INTERNATIONAL COMPARISONS LABOR FORCE LABOR FORCE PARTICIPATION LABOR INCOME LABOR MARKET LABOR MARKET EXPERIENCE LABOR MARKETS LABOR UNIONS MALE WORKERS MARKET INCOME MATHEMATICS MEAN VALUE NEGATIVE SIGN NET EFFECT OBSERVED CHANGES OCCUPATIONS PENSIONS PERSISTENT INEQUALITY POLICY DISCUSSIONS POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POOR POPULATION SHARE POVERTY CHANGES POVERTY GAP POVERTY HEADCOUNT POVERTY RATE POVERTY REDUCTION PREVIOUS RESULTS PRICE CHANGES PROGRAMS REDISTRIBUTIVE EFFECTS REDUCING INEQUALITY REDUCING POVERTY REGIONAL DIFFERENCES REGIONAL LEVEL RELATIVE DEMAND RELATIVE SUPPLY RESIDUAL TERM SIMULATIONS SKILL GROUPS SKILL LEVEL SKILL PREMIUM SKILLED LABOR SKILLED WORKERS SOCIAL SAFETY SOCIAL SAFETY NETS STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL REFORMS UNSKILLED LABOR UNSKILLED WORKERS WAGE DISPERSION WAGE GAP WAGE INEQUALITY WAGES WOMEN WORKERS WORKER YOUNG WORKERS Household income inequality has declined in Latin America in the past decades, contributing significantly to poverty reduction in the region. Although available evidence shows that changes in the labor income are among the main factors behind these inequality trends, few studies have analyzed more closely the labor market dynamics that have led to a decline in total income inequality in some countries, but also to an increase in others. Using household survey data for a sample of 15 countries in Latin America from 1995 to 2010, this paper uses an extension of the Juhn-Murphy-Pierce methodology to decompose changes in labor income inequality (hourly wages) into a quantity effect (capturing changes in the distribution of workers' skills), price effect (reflecting returns to skills), and unobservables effect (other components, within skill groups, affecting labor income). The results show that falling returns to skills for both education and experience is, on average, driving the decline in labor income inequality in Latin America. The quantity effect, in turn, has contributed little to inequality reduction, mostly attributable to a larger dispersion in years of experience, possibly linked to the region's demographic transition and to significant increases in female labor force participation. Additional findings show that wage inequality, still high in the region, is coupled with inequality in terms of hours worked. The paper complements the existing literature by presenting separate results for males and females, as well as formal and informal sector workers as an attempt to control for secular shifts in these characteristics. 2013-04-12T17:13:03Z 2013-04-12T17:13:03Z 2013-03 http://documents.worldbank.org/curated/en/2013/03/17428963/fifteen-years-inequality-latin-america-labor-markets-helped-fifteen-years-inequality-latin-america-labor-markets-helped http://hdl.handle.net/10986/13183 English en_US Policy Research Working Paper;No. 6384 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean |