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declining income inequality in Latin America

by on June 4, 2010

But nothing about consumption.  The factors are important. not the closing of the gap of rich and poor, but between skilled and unskilled workers.

Declining Inequality in Latin America

A Decade of Progress?


Luis Felipe López-Calva and Nora Claudia Lustig, editors

Latin America has long suffered from high levels of economic inequality. But since 2000, the tide has begun to turn, as income inequality has declined in twelve countries across the region. In this book, leading economists explain what happened in these countries and why.

Led by editors Felipe López-Calva and Nora Lustig, a panel of distinguished economists undertakes in-depth analyses of Argentina, Brazil, Mexico and Peru. In addition, they provide essential background in the form of overviews of the relationship between markets and income inequality, the political economy of redistribution and the evolution of income inequality in the advanced industrialized economies. According to the panel, two factors account for much of the decline in income inequality: a decrease in the wage gap between skilled and low-skilled labor, and an increase in government transfers targeted to the poor.

Note that the result can be achieved by lowering the rate for skilled workers. This could leave the gap between all workers and rich intact. I would have to read the text carefully to see how the fudged this.

Douglass Carmichael

MAHB Millennium  Assessment of Human Behavior

Stanford Media X , Stanford Stratgey Stdios and  Palo Alto StrategyStudios

Book draft  at

Palo Alto tues-thurs cell 206-388-7712

Russian River 707-865-0433

Posted via email from Doug Carmichael reflections


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