Life is Unfair in Latin America, But Does it Matter for Growth?
نویسنده
چکیده
I analyze the effect of inequality on economic growth in Latin America, where inequality is measured as the area of family farms as a percentage of the total area of agricultural holdings. Using data from 18 Latin American countries between 1960 and 2004, I find that inequality has a nonlinear effect on economic growth. Overall, for the countries included in this analysis, the share of family farms has a positive significant effect on economic growth. These findings are robust to controlling for several factors, using a different indicator of inequality (land Gini), and addressing for endogeneity. JEL Categories: D63, O13, O40, O54
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Exactly 150 years after publication of the Communist Manifesto, inequality looms large on the global agenda. In the United States, the income of the poorest 20 percent of households has declined steadily since the early 1970s. Meanwhile, the income of the richest 20 percent has increased by 15 percent and that of the top 1 percent by more than 100 percent. In Asia, the high concentrations of we...
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