Deconstructing the Decline in Inequality in Latin America

Inequality in Latin America unambiguously declined in the 2000s. The Gini coefficient fell in 16 of the 17 countries where there are comparable data, and the change was statistically significant for all of them. Existing studies point to two main e...

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Main Authors:	Lustig, Nora, Lopez-Calva, Luis F., Ortiz-Juarez, Eduardo
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, D.C 2013
Subjects:	ACCOUNTING ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET POLICIES ANNUAL % CHANGE AVERAGE CHANGE BASIC EDUCATION BIRTH RATES CAPITAL ACCUMULATION COLLEGE GRADUATES CONCENTRATION COEFFICIENTS COUNTERFACTUALS DECLINING INEQUALITY DEMAND-SIDE DEMOCRACY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTIONAL CHANGES DRIVERS EARNING ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC REVIEW EDUCATIONAL ATTAINMENT EDUCATIONAL LEVELS ELASTICITY EMPLOYMENT EMPLOYMENT EFFECTS EQUALIZING EFFECT EXPLANATORY VARIABLES FORMAL EDUCATION GINI COEFFICIENT GLOBAL DEVELOPMENT GROWTH COMPONENT GROWTH SPELLS HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN DEVELOPMENT HUMAN RESOURCES INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME INEQUALITY INCOME REDISTRIBUTION INCOME SOURCE INCOMES INEQUALITY INEQUALITY CHANGES INEQUALITY MEASURE INEQUALITY TRENDS INVERSE RELATIONSHIP LABOR INCOME LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET POLICIES LABOR RELATIONS LABOR SUPPLY LEVELS OF EDUCATION MEAN INCOME MIGRANT MINIMUM WAGE MINIMUM WAGES OPPORTUNITY COST PENSIONS PER CAPITA INCOME PER CAPITA INCOMES POLICY CHANGES POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POOR HOUSEHOLDS POVERTY LINE POVERTY MEASURES POVERTY REDUCTION POWER PARITY PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOLING PRIVATE TRANSFERS PRODUCTION FUNCTION PROGRAMS PROGRESS PUBLIC EXPENDITURE PUBLIC SPENDING PUBLIC TRANSFERS PURCHASING POWER PURCHASING POWER PARITY QUALITY OF EDUCATION REAL EXCHANGE RATE REAL WAGES REDISTRIBUTIVE POLICIES REDUCING POVERTY REGIONAL AVERAGES RELATIVE CONTRIBUTIONS RELATIVE DEMAND RELATIVE DISTRIBUTION RELATIVE SUPPLY RELATIVE WAGES REMITTANCE REMITTANCES RENTS RESIDUAL TERM RESPECT RURAL AREAS SCHOOL ENROLMENT SECONDARY EDUCATION SECONDARY SCHOOL SECONDARY SCHOOLING SKILL GROUPS SKILL PREMIUM SKILL PREMIUMS SKILLED LABOR SKILLED WORKERS SOCIAL POLICY TERTIARY EDUCATION UNEMPLOYMENT UNEMPLOYMENT RATES UNSKILLED LABOR UNSKILLED WORKERS URBAN AREAS WAGE DIFFERENTIALS WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM government transfers
Online Access:	http://documents.worldbank.org/curated/en/2013/07/18060343/deconstructing-decline-inequality-latin-america http://hdl.handle.net/10986/15915

id	okr-10986-15915
recordtype	oai_dc
spelling	okr-10986-159152021-04-23T14:03:26Z Deconstructing the Decline in Inequality in Latin America Lustig, Nora Lopez-Calva, Luis F. Ortiz-Juarez, Eduardo ACCOUNTING ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET POLICIES ANNUAL % CHANGE AVERAGE CHANGE BASIC EDUCATION BIRTH RATES CAPITAL ACCUMULATION COLLEGE GRADUATES CONCENTRATION COEFFICIENTS COUNTERFACTUALS DECLINING INEQUALITY DEMAND-SIDE DEMOCRACY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTIONAL CHANGES DRIVERS EARNING ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC REVIEW EDUCATIONAL ATTAINMENT EDUCATIONAL LEVELS ELASTICITY EMPLOYMENT EMPLOYMENT EFFECTS EQUALIZING EFFECT EXPLANATORY VARIABLES FORMAL EDUCATION GINI COEFFICIENT GLOBAL DEVELOPMENT GROWTH COMPONENT GROWTH SPELLS HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN DEVELOPMENT HUMAN RESOURCES INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME INEQUALITY INCOME REDISTRIBUTION INCOME SOURCE INCOMES INEQUALITY INEQUALITY CHANGES INEQUALITY MEASURE INEQUALITY TRENDS INVERSE RELATIONSHIP LABOR INCOME LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET POLICIES LABOR RELATIONS LABOR SUPPLY LEVELS OF EDUCATION MEAN INCOME MIGRANT MINIMUM WAGE MINIMUM WAGES OPPORTUNITY COST PENSIONS PER CAPITA INCOME PER CAPITA INCOMES POLICY CHANGES POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POOR HOUSEHOLDS POVERTY LINE POVERTY MEASURES POVERTY REDUCTION POWER PARITY PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOLING PRIVATE TRANSFERS PRODUCTION FUNCTION PROGRAMS PROGRESS PUBLIC EXPENDITURE PUBLIC SPENDING PUBLIC TRANSFERS PURCHASING POWER PURCHASING POWER PARITY QUALITY OF EDUCATION REAL EXCHANGE RATE REAL WAGES REDISTRIBUTIVE POLICIES REDUCING POVERTY REGIONAL AVERAGES RELATIVE CONTRIBUTIONS RELATIVE DEMAND RELATIVE DISTRIBUTION RELATIVE SUPPLY RELATIVE WAGES REMITTANCE REMITTANCES RENTS RESIDUAL TERM RESPECT RURAL AREAS SCHOOL ENROLMENT SECONDARY EDUCATION SECONDARY SCHOOL SECONDARY SCHOOLING SKILL GROUPS SKILL PREMIUM SKILL PREMIUMS SKILLED LABOR SKILLED WORKERS SOCIAL POLICY TERTIARY EDUCATION UNEMPLOYMENT UNEMPLOYMENT RATES UNSKILLED LABOR UNSKILLED WORKERS URBAN AREAS WAGE DIFFERENTIALS WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM government transfers Inequality in Latin America unambiguously declined in the 2000s. The Gini coefficient fell in 16 of the 17 countries where there are comparable data, and the change was statistically significant for all of them. Existing studies point to two main explanations for the decline in inequality: a reduction in hourly labor income inequality, and more robust and progressive government transfers. Available evidence suggests that it is the skill premium -- or, more precisely, the returns to primary, secondary, and tertiary education vs. no schooling or incomplete primary schooling -- that drives the decline in hourly labor income inequality. The causes behind the decline in returns to schooling, however, have not been unambiguously established. Some studies find that returns fell because of an increase in the supply of workers with more educational attainment; others, because of a shift in demand away from skilled labor. 2013-09-27T18:59:10Z 2013-09-27T18:59:10Z 2013-07 http://documents.worldbank.org/curated/en/2013/07/18060343/deconstructing-decline-inequality-latin-america http://hdl.handle.net/10986/15915 English en_US Policy Research Working Paper;No.6552 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean
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	ACCOUNTING ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET POLICIES ANNUAL % CHANGE AVERAGE CHANGE BASIC EDUCATION BIRTH RATES CAPITAL ACCUMULATION COLLEGE GRADUATES CONCENTRATION COEFFICIENTS COUNTERFACTUALS DECLINING INEQUALITY DEMAND-SIDE DEMOCRACY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTIONAL CHANGES DRIVERS EARNING ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC REVIEW EDUCATIONAL ATTAINMENT EDUCATIONAL LEVELS ELASTICITY EMPLOYMENT EMPLOYMENT EFFECTS EQUALIZING EFFECT EXPLANATORY VARIABLES FORMAL EDUCATION GINI COEFFICIENT GLOBAL DEVELOPMENT GROWTH COMPONENT GROWTH SPELLS HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN DEVELOPMENT HUMAN RESOURCES INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME INEQUALITY INCOME REDISTRIBUTION INCOME SOURCE INCOMES INEQUALITY INEQUALITY CHANGES INEQUALITY MEASURE INEQUALITY TRENDS INVERSE RELATIONSHIP LABOR INCOME LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET POLICIES LABOR RELATIONS LABOR SUPPLY LEVELS OF EDUCATION MEAN INCOME MIGRANT MINIMUM WAGE MINIMUM WAGES OPPORTUNITY COST PENSIONS PER CAPITA INCOME PER CAPITA INCOMES POLICY CHANGES POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POOR HOUSEHOLDS POVERTY LINE POVERTY MEASURES POVERTY REDUCTION POWER PARITY PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOLING PRIVATE TRANSFERS PRODUCTION FUNCTION PROGRAMS PROGRESS PUBLIC EXPENDITURE PUBLIC SPENDING PUBLIC TRANSFERS PURCHASING POWER PURCHASING POWER PARITY QUALITY OF EDUCATION REAL EXCHANGE RATE REAL WAGES REDISTRIBUTIVE POLICIES REDUCING POVERTY REGIONAL AVERAGES RELATIVE CONTRIBUTIONS RELATIVE DEMAND RELATIVE DISTRIBUTION RELATIVE SUPPLY RELATIVE WAGES REMITTANCE REMITTANCES RENTS RESIDUAL TERM RESPECT RURAL AREAS SCHOOL ENROLMENT SECONDARY EDUCATION SECONDARY SCHOOL SECONDARY SCHOOLING SKILL GROUPS SKILL PREMIUM SKILL PREMIUMS SKILLED LABOR SKILLED WORKERS SOCIAL POLICY TERTIARY EDUCATION UNEMPLOYMENT UNEMPLOYMENT RATES UNSKILLED LABOR UNSKILLED WORKERS URBAN AREAS WAGE DIFFERENTIALS WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM government transfers
spellingShingle	ACCOUNTING ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET POLICIES ANNUAL % CHANGE AVERAGE CHANGE BASIC EDUCATION BIRTH RATES CAPITAL ACCUMULATION COLLEGE GRADUATES CONCENTRATION COEFFICIENTS COUNTERFACTUALS DECLINING INEQUALITY DEMAND-SIDE DEMOCRACY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTIONAL CHANGES DRIVERS EARNING ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC REVIEW EDUCATIONAL ATTAINMENT EDUCATIONAL LEVELS ELASTICITY EMPLOYMENT EMPLOYMENT EFFECTS EQUALIZING EFFECT EXPLANATORY VARIABLES FORMAL EDUCATION GINI COEFFICIENT GLOBAL DEVELOPMENT GROWTH COMPONENT GROWTH SPELLS HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN DEVELOPMENT HUMAN RESOURCES INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME INEQUALITY INCOME REDISTRIBUTION INCOME SOURCE INCOMES INEQUALITY INEQUALITY CHANGES INEQUALITY MEASURE INEQUALITY TRENDS INVERSE RELATIONSHIP LABOR INCOME LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET POLICIES LABOR RELATIONS LABOR SUPPLY LEVELS OF EDUCATION MEAN INCOME MIGRANT MINIMUM WAGE MINIMUM WAGES OPPORTUNITY COST PENSIONS PER CAPITA INCOME PER CAPITA INCOMES POLICY CHANGES POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POOR HOUSEHOLDS POVERTY LINE POVERTY MEASURES POVERTY REDUCTION POWER PARITY PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOLING PRIVATE TRANSFERS PRODUCTION FUNCTION PROGRAMS PROGRESS PUBLIC EXPENDITURE PUBLIC SPENDING PUBLIC TRANSFERS PURCHASING POWER PURCHASING POWER PARITY QUALITY OF EDUCATION REAL EXCHANGE RATE REAL WAGES REDISTRIBUTIVE POLICIES REDUCING POVERTY REGIONAL AVERAGES RELATIVE CONTRIBUTIONS RELATIVE DEMAND RELATIVE DISTRIBUTION RELATIVE SUPPLY RELATIVE WAGES REMITTANCE REMITTANCES RENTS RESIDUAL TERM RESPECT RURAL AREAS SCHOOL ENROLMENT SECONDARY EDUCATION SECONDARY SCHOOL SECONDARY SCHOOLING SKILL GROUPS SKILL PREMIUM SKILL PREMIUMS SKILLED LABOR SKILLED WORKERS SOCIAL POLICY TERTIARY EDUCATION UNEMPLOYMENT UNEMPLOYMENT RATES UNSKILLED LABOR UNSKILLED WORKERS URBAN AREAS WAGE DIFFERENTIALS WAGE INEQUALITY WAGE LEVELS WAGE PREMIUM government transfers Lustig, Nora Lopez-Calva, Luis F. Ortiz-Juarez, Eduardo Deconstructing the Decline in Inequality in Latin America
geographic_facet	Latin America & Caribbean
relation	Policy Research Working Paper;No.6552
description	Inequality in Latin America unambiguously declined in the 2000s. The Gini coefficient fell in 16 of the 17 countries where there are comparable data, and the change was statistically significant for all of them. Existing studies point to two main explanations for the decline in inequality: a reduction in hourly labor income inequality, and more robust and progressive government transfers. Available evidence suggests that it is the skill premium -- or, more precisely, the returns to primary, secondary, and tertiary education vs. no schooling or incomplete primary schooling -- that drives the decline in hourly labor income inequality. The causes behind the decline in returns to schooling, however, have not been unambiguously established. Some studies find that returns fell because of an increase in the supply of workers with more educational attainment; others, because of a shift in demand away from skilled labor.
format	Publications & Research :: Policy Research Working Paper
author	Lustig, Nora Lopez-Calva, Luis F. Ortiz-Juarez, Eduardo
author_facet	Lustig, Nora Lopez-Calva, Luis F. Ortiz-Juarez, Eduardo
author_sort	Lustig, Nora
title	Deconstructing the Decline in Inequality in Latin America
title_short	Deconstructing the Decline in Inequality in Latin America
title_full	Deconstructing the Decline in Inequality in Latin America
title_fullStr	Deconstructing the Decline in Inequality in Latin America
title_full_unstemmed	Deconstructing the Decline in Inequality in Latin America
title_sort	deconstructing the decline in inequality in latin america
publisher	World Bank, Washington, D.C
publishDate	2013
url	http://documents.worldbank.org/curated/en/2013/07/18060343/deconstructing-decline-inequality-latin-america http://hdl.handle.net/10986/15915
_version_	1764431943559020544

Deconstructing the Decline in Inequality in Latin America

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