Inequality at Low Levels of Aggregation in Chile*

Claudio Agostini and Phillip Brown ()
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Phillip Brown: Colby College, Waterville, Maine, United States and International Food Policy Research Institute, Washington, D.C., United States.

ILADES-Georgetown University Working Papers from Ilades-Georgetown University, School of Economics and Bussines

Abstract: Despite success in reducing poverty over the last twenty years, inequality in Chile has remained virtually unchanged, making Chile one of the least equal countries in the world. High levels of inequality have been shown to hamper further reductions in poverty as well as economic growth, and local inequality has been shown to affect such outcomes as violence and health. The study of inequality at the local level is thus crucial for understanding the economic well-being of a country. Local measures of inequality have been difficult to obtain, but recent theoretical advances have enabled the combination of survey and census data to generate estimates of inequality that are robust at disaggregated geographic levels. In this paper, we employ this methodology to produce consistent and precise estimates of inequality for every county in Chile. We find considerable heterogeneity in county-level estimates of inequality, with Gini coefficients ranging from 0.41 to 0.63. An appendix includes estimated inequality for each county so the broader research community may assess the effect of local inequality on a broad range out outcomes, as well as analyze the determinants of inequality itself.

Keywords: inequality; poverty mapping; government subsidies; cash transfers; Chile (search for similar items in EconPapers)
JEL-codes: O15 D63 O54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-lam
Date: Written 2007-08
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http://www.economia.uahurtado.cl/pdf/publicaciones/inv186.pdf (application/pdf)

Related works:
Working Paper: Inequality at Low Levels of Aggregation in Chile (2007)
Working Paper: Inequality at Low Levels of Aggregation in Chile (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:ila:ilades:inv186

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