Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions

Florencia Lopez Boo

No 33, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: From 1992 to 2001, despite its rapid economic growth during the early 1990s, Argentina experienced a period characterized by increasing income inequality and poverty. An axiomatically modified Datt-Ravallion decomposition, that separates changes in poverty rates into mean and inequality components, will illustrate how each of them has contributed to those changes. Contrary to the claims of much of the recent cross-country literature, income inequality does not appear stable in Argentina. Previous results are extended in two key ways. First, the empirical density function is used to calculate the inequality component, without assuming a particular functional form for the Lorenz curve. Second, both components are recomputed without the vaguely defined Datt-Ravallion residual, which improves interpretability.

Keywords: decomposition of changes in poverty; poverty measures; inequality and growth. (search for similar items in EconPapers)
JEL-codes: C16 D63 I30 I31 I32 O54 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2006
New Economics Papers: this item is included in nep-dev
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Citations: View citations in EconPapers (1)

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http://www.ecineq.org/milano/WP/ECINEQ2006-33.pdf First version, 2006 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2006-33

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