Income Inequality, Poverty, and the Rule of Law: Latin America vs the Rest of the World1

Robert Sonora

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the relationship between the rule of law and income inequality and poverty in twenty Latin American countries using an unbalanced panel over the period 1995 - 2014. These results are then compared to estimates for non-Latin American counties. Using feasible GLS panel methods, we finnd that in many cases, improvements to legal systems reduce inequality and poverty in Latin America while having the opposite effect in the rest of the world. Results are robust to different definitions of inequality and rule of law. Protection of property rights is the most significant rule of law indicator for Latin America economies.

Keywords: Income Inequality; Poverty Growth; Rule of law; Panel data; Institutions (search for similar items in EconPapers)
JEL-codes: D63 E02 I32 K42 O43 O54 (search for similar items in EconPapers)
Date: 2019-01-05
New Economics Papers: this item is included in nep-law and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:91512

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