Recent Trends in Inequality and Poverty in Developing Countries

Alvaredo, Facundo; Gasparini, Leonardo

doi:10.1016/b978-0-444-59428-0.00010-2

Cited by 138 publications

(81 citation statements)

References 120 publications

(140 reference statements)

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“…Recent comparisons of Gini coefficients on household consumption per capita calculated for developing regions do confirm that the median Gini is higher in Latin America and the Caribbean, although the mean Gini is slightly lower than in sub-Saharan Africa (Alvaredo and Gasparini 2015). In any case, the levels of inequality are high for almost every country in the region, and undoubtedly inequality is a persistent characteristic of LAC.…”

Section: Recent Evolution Of Income Inequality In Latin Americamentioning

confidence: 99%

“…Annex (see Table A.1) Alvaredo and Gasparini (2015) Open Access This chapter is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, duplication, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, a link is provided to the Creative Commons license and indicate if changes were made. The images or other third party material in this chapter are included in the work's Creative Commons license, unless indicated otherwise in the credit line; if such material is not included in the work's Creative Commons license and the respective action is not permitted by statutory regulation, users will need to obtain permission from the license holder to duplicate, adapt or reproduce the material.…”

Section: Final Remarksmentioning

confidence: 99%

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Inequality in Latin America: ECLAC’s Perspective

Amarante

Prado

2017

Has Latin American Inequality Changed Direction?

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Equality has been at the center of ECLAC´s analysis of the region since structuralist times. In those pioneering writings, the distribution of assets and the concentration of power in the hands of elites were crucial aspects to understand (the lack of) equality in the region. Following this tradition, the last three documents that the institution submitted for consideration by the Governments of Latin America and the Caribbean at its three last sessions have put equality back in the center of the regional agenda, expanding the conception of equality beyond distributive fairness-whose scope tends to be confined to the distribution of transferable, quantifiable resources-taking in other dimensions and considering equality in a "relational" context of socialization, autonomy, and recognition.As put forth in Time for equality: closing gaps, opening trails (ECLAC 2010), the quest for equality is part of the drive to abolish privileges and establish equal rights for all individuals, regardless of origin, affiliations, or position in society. It calls not only for universal civil and political rights but also for advancing towards distributive justice in which everyone enjoys the benefits of progress. Time for equality argued that equality stands at the crossroads between economic growth, social inclusion, and recognition of diversity, advocating a kind of development that forges a positive link between greater equality and gains in productivity, capacities, and sustainable growth. The document postulated that social equality and the kind of economic dynamism that transform production patterns are not at odds with each other and that the challenge is to find synergies between the two. The growth strategy should include less structural heterogeneity and more productive development, and the pursuit of equality through the enhancement of human capacities and the mobilization of state energies. The basic idea is the need of building more cohesive societies around productive dynamics, constructing positive social and territorial synergies, and strengthening the protection of individuals through improvements in labor markets.

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Section: Recent Evolution Of Income Inequality In Latin Americamentioning

confidence: 99%

Section: Final Remarksmentioning

confidence: 99%

Inequality in Latin America: ECLAC’s Perspective

Amarante

Prado

2017

Has Latin American Inequality Changed Direction?

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“…En cualquier caso, también se calcularon los indicadores de desigualdad sin ajuste y los resultados obtenidos son siempre robustos. Por último, se definió un mínimo de subsistencia de 300 dólares anuales, consistente con el utilizado por Milanovic, Lindert y Williamson (2011). 14 América Latina y el Caribe típicamente son señaladas como las regiones más desiguales del mundo, pero este tipo de afirmación usualmente se hace combinando Ginis de ingreso con Ginis de consumo para el resto de las regiones o ignorando la región de África subsahariana (Alvaredo y Gasparini, 2014). Como se observará a continuación, incluso realizando los ajustes pertinentes, América Latina es una de las regiones con mayor desigualdad.…”

Section: Gráfica 4 Tasa De Extracción E Ingreso Promedio a Lo Largo unclassified

La frontera de posibilidades de desigualdad en América Latina

Serrano

Benzaquén

2017

El Trimestre

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Background: This paper presents new evidence of the inequality possibility frontier and the inequality extraction ratio (the percentage of total inequality that was extracted by global elites) of Latin America (LA) in the last two decades. Moreover, we explore the relevance of the inequality extraction ratio (IER) in the analysis of social conflict, institutional instability and corruption. Methods: Estimation of IER and Gini index for 18 Latin American countries in the period 1990-2013, using household surveys. Estimation of multivariate econometric models with fixed effects to analyze the relationship between income distribution and indicators of social conflict. Results: AL improves two positions in the ranking of global inequality using the IER instead of Gini index. Within Latin America there is a process of convergence in levels of inequality, but the two measures evolve differently: while the Gini index increases in the 90s and decreases in the 2000s, the IER decreases throughout the entire period. In addition, we found a positive association between IER and social conflict. Conclusions: Using the IER, LA is not as unequal as with the Gini index. Moreover, countries in LA with high rates of IER are more likely to have high levels of social conflict.

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“…During the last decade, Latin America has experienced an important decrease in household income inequality (Lustig et al 2013;Alvaredo and Gasparini 2015). Recent studies have shown that the main driver must have been the reduction in wage inequality (Abad and Lindert 2017;De la Torre et al 2017).…”

Section: Introductionmentioning

confidence: 99%

Learning from your neighbor: tax-benefit systems swaps in Latin America

2017

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Over the last decades, Latin American countries have experienced a noticeable decrease in income inequality. While this trend is mainly associated with a decline in wage inequality, progressive reforms of the tax-benefit systems of the region may have played a role. While redistributive systems in Latin America are still in their infancy, they are constantly expanding and do so at different pace in the region. To investigate this point in a comparative way, the present study exploits newly developed tax-benefit microsimulation models for Ecuador and Colombia. These two neighboring countries show contrasted situations in terms of income distribution and we characterize the extent to which this difference is explained by different tax-benefit systems. The comparative nature of our microsimulation models allows us to swap tax-benefit systems between countries to produce counterfactual simulations whereby the system of a country is applied to the population of the other. In this way, we can decompose the total country difference in income distribution to extract the role of different tax-benefit policies. We confirm that the Ecuadorean system is more redistributive and quantify the difference: if the Ecuadorean system was applied to the Colombian population, the Gini coefficient would be reduced by 1.7 points in Colombia. Headcount poverty would decrease by around 10% and the intensity of poverty by up to 14.7%. This analysis contributes to the recent literature on the redistributive role of taxbenefit systems in Latin America and highlights the role of microsimulation techniques to show how countries in the region can learn from each other in order to improve social protection and reduce income inequality.

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Recent Trends in Inequality and Poverty in Developing Countries

Cited by 138 publications

References 120 publications

Inequality in Latin America: ECLAC’s Perspective

Inequality in Latin America: ECLAC’s Perspective

La frontera de posibilidades de desigualdad en América Latina

Learning from your neighbor: tax-benefit systems swaps in Latin America

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