Rising Incomes and Inequality of Access to Infrastructure among Latin American Households

This paper documents access to services and ownership of infrastructure-related durables in the water, energy, telecom, and transport areas, based on harmonized household survey data covering 1.6 million households in 14 Latin American countries du...

Full description

Bibliographic Details
Main Authors: Fay, Marianne, Straub, Stephane
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/716021488294464950/Rising-incomes-and-inequality-of-access-to-infrastructure-among-Latin-American-households
http://hdl.handle.net/10986/26185
id okr-10986-26185
recordtype oai_dc
spelling okr-10986-261852021-06-08T14:42:47Z Rising Incomes and Inequality of Access to Infrastructure among Latin American Households Fay, Marianne Straub, Stephane infrastructure household consumption inequality access to services water electricity universal access This paper documents access to services and ownership of infrastructure-related durables in the water, energy, telecom, and transport areas, based on harmonized household survey data covering 1.6 million households in 14 Latin American countries during 1992 to 2012. The paper provides a systematic disaggregation of access and ownership rates at different levels of income and over time, and econometrically derives the country infrastructure premium, a measure of how much a household benefits from simply being located in a given country. The results show extensive inequality of access, within countries across the income distribution, but also across countries for households at similar levels of income. For water and electricity, for example, up to two-thirds of the variability in individual percentile access to infrastructure services and consumption of related assets can be explained by country residence only. In addition, few country fundamentals appear to be significant in explaining this variability, pointing to policy differences as an important determinant. The paper derives the income elasticity of infrastructure access for the full set of indicators, and uses these to estimate the time that would be needed to close the remaining gap for households at different levels of the income distribution under a "business as usual" hypothesis. Under that scenario, universal access appears to be decades away for many countries in the region. The last part discusses the policy challenges, arguing that in a context in which public budgets face strong constraints and significant increases in private investment are unlikely to be forthcoming, a large part of the solution lies in refocused investment strategies, better demand management, and improved public spending efficiency. 2017-03-01T22:39:43Z 2017-03-01T22:39:43Z 2017-02 Working Paper http://documents.worldbank.org/curated/en/716021488294464950/Rising-incomes-and-inequality-of-access-to-infrastructure-among-Latin-American-households http://hdl.handle.net/10986/26185 English en_US Policy Research Working Paper;No. 7987 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper 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 infrastructure
household consumption
inequality
access to services
water
electricity
universal access
spellingShingle infrastructure
household consumption
inequality
access to services
water
electricity
universal access
Fay, Marianne
Straub, Stephane
Rising Incomes and Inequality of Access to Infrastructure among Latin American Households
geographic_facet Latin America & Caribbean
relation Policy Research Working Paper;No. 7987
description This paper documents access to services and ownership of infrastructure-related durables in the water, energy, telecom, and transport areas, based on harmonized household survey data covering 1.6 million households in 14 Latin American countries during 1992 to 2012. The paper provides a systematic disaggregation of access and ownership rates at different levels of income and over time, and econometrically derives the country infrastructure premium, a measure of how much a household benefits from simply being located in a given country. The results show extensive inequality of access, within countries across the income distribution, but also across countries for households at similar levels of income. For water and electricity, for example, up to two-thirds of the variability in individual percentile access to infrastructure services and consumption of related assets can be explained by country residence only. In addition, few country fundamentals appear to be significant in explaining this variability, pointing to policy differences as an important determinant. The paper derives the income elasticity of infrastructure access for the full set of indicators, and uses these to estimate the time that would be needed to close the remaining gap for households at different levels of the income distribution under a "business as usual" hypothesis. Under that scenario, universal access appears to be decades away for many countries in the region. The last part discusses the policy challenges, arguing that in a context in which public budgets face strong constraints and significant increases in private investment are unlikely to be forthcoming, a large part of the solution lies in refocused investment strategies, better demand management, and improved public spending efficiency.
format Working Paper
author Fay, Marianne
Straub, Stephane
author_facet Fay, Marianne
Straub, Stephane
author_sort Fay, Marianne
title Rising Incomes and Inequality of Access to Infrastructure among Latin American Households
title_short Rising Incomes and Inequality of Access to Infrastructure among Latin American Households
title_full Rising Incomes and Inequality of Access to Infrastructure among Latin American Households
title_fullStr Rising Incomes and Inequality of Access to Infrastructure among Latin American Households
title_full_unstemmed Rising Incomes and Inequality of Access to Infrastructure among Latin American Households
title_sort rising incomes and inequality of access to infrastructure among latin american households
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/716021488294464950/Rising-incomes-and-inequality-of-access-to-infrastructure-among-Latin-American-households
http://hdl.handle.net/10986/26185
_version_ 1764461089127399424