Spatial Income Inequality in Chile and the Rol of Spatial Labor Sorting

Susana Katherine Chacón Espejo () and Dusan Paredes
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Susana Katherine Chacón Espejo: Master in Regional Sciences - Department of Economics, Universidad Católica del Norte - Chile

No 46, Documentos de Trabajo en Economia y Ciencia Regional from Universidad Catolica del Norte, Chile, Department of Economics

Abstract: The spatial income inequality in Latin American countries is a recent academic affair. Particularly, the case of Chile highlights around the world because it has one of the highest individual and spatial inequality rates. This article analyzes the spatial income inequality in Chile during 1992 2011 evaluating the role of the spatial labor sorting through multilevel models. The findings show that human capital doesn't allocate randomly across the space but its spatial concentration at the biggest urban centers impacts significantly the income inequality between counties. These findings motivate the discussion about spatial dimension of the inequality and suggest that policymakers should consider ways to spread human capital throughout the nation as an alternative to reduce spatial inequality.

Keywords: Spatial income inequality; spatial labor sorting; human capital; multilevel regression. (search for similar items in EconPapers)
JEL-codes: O15 O18 R12 R23 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2013-04, Revised 2013-04
New Economics Papers: this item is included in nep-hrm, nep-lam, nep-lma, nep-ltv, nep-pbe and nep-ure
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