The Pink Tide and Income Inequality in Latin America

Income inequality, distributive fairness and political trust in Latin America.

In the wake of rising levels of income inequality during the past two decades, widespread concerns emerged about the social and political consequences of the widening gap between the poor and the rich that can be observed in many established democracies. Several empirical studies substantiate the link between macro-level income inequality and political attitudes and behavior, pointing at its br...

The Income Distribution Threat in Latin America

Most of the Latin America countries which have introduced market-friendly economic reforms during the course of the last two decades have also suffered serious increases in inequality; the systematic timing coincidence of the two events suggests that the reforms have been one of the causes of the worsening distribution. That major increases in inequality have occurred in many Latin American cou...

Inequality in Latin America: Determinants and Consequences

Historical Roots of Inequality in Latin America

Following Engerman and Sokoloff (1997, 2000, 2002) and Acemoglu, Johnson, and Robinson (2001, 2002), the authors of this chapter argue that the contemporary situation cannot be understood without recognizing that extreme inequality emerged soon after the Europeans began to colonize the Americas half a millennium ago, and has been reflected in the institutions they put in place. Both this initia...

InequalIty in Focus Taxes , Transfers , and Income Redistribution in Latin America

H ow much reduction in inequality and poverty does latin america accomplish through taxes and transfers? How progressive1 are revenue-collection and social-spending patterns? an in-depth fiscal incidence analysis applied to argentina’s urban areas, where three-fourths of the population lives, as well as to Bolivia, Brazil, Mexico, Peru, and uruguay, finds the following: 1. the extent of income ...