Urbanization and Urban-Rural Income Inequality in Latin America

Buket Savranlar and Ebru Topcu ()
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Buket Savranlar: Dr. Instructor Member Nisantasi University, Vocational School, Istanbul, Turkiye
Ebru Topcu: Nevsehir Haci Bektas Veli University, Faculty of Economics and Administrative Sciences, Nevsehir, Turkiye

Istanbul Journal of Economics-Istanbul Iktisat Dergisi, 2023, vol. 73, issue 73-1, 261-279

Abstract: After the pioneering work by Kuznets (1955), the relationship between urbanization and income inequality is among the topics frequently examined in the literature. However, the number of attempts focusing on this issue in the context of rural and urban income inequality is quite limited. Therefore, the aim of this study is to examine the relationship between urbanization and urban-rural income inequality in Latin America over the period 2000-2018. Panel quantile regression results reveal that urbanization reduces both rural and urban income inequality in all quantiles. In the Latin American context, policies that support urbanization should be implemented to reduce both rural and urban income inequality. Furthermore, causality results present evidence of a bidirectional causality between urbanization and both rural and urban income inequality.

Keywords: Urbanization; Income inequality; Panel quantile regression; Panel causality JEL Classification: P25; R10; R13 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ist:journl:v:73:y:2023:i:1:p:261-279

DOI: 10.26650/ISTJECON2022-1195063

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