EconPapers    
Economics at your fingertips  
 

The rise and fall of income inequality in Chile

Francisco Parro and Loreto Reyes ()
Additional contact information
Loreto Reyes: Columbia University

Latin American Economic Review, 2017, vol. 26, issue 1, 1-31

Abstract: Abstract This paper presents evidence on a rise and fall in income inequality in Chile during the past two decades. We show that income inequality rises from 1990 to 2000 and then falls from 2000 to 2011. We perform simple but informative decompositions to figure out the contributing factors behind that dissimilarity in the behavior of inequality across those two subperiods. Our results are consistent with a story in which economic growth increases the demand for more educated workers, initially increasing inequality. However, those higher returns to education encourage agents to invest in higher education, producing a subsequent human capital deepening that reduces inequality at later stages of the development process.

Keywords: Inequality; Labor markets; Skills; J21; J31; J24 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s40503-017-0040-y Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:laecrv:v:26:y:2017:i:1:d:10.1007_s40503-017-0040-y

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40503

Access Statistics for this article

Latin American Economic Review is currently edited by Susan W. Parker, Kaniska Dam and Gonzalo Castañeda

More articles in Latin American Economic Review from Springer, Centro de Investigaciòn y Docencia Económica (CIDE)
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-12-14
Handle: RePEc:spr:laecrv:v:26:y:2017:i:1:d:10.1007_s40503-017-0040-y