Characterization of inequality changes through microeconometric decompositions. The case of Greater Buenos Aires

Leonardo Gasparini, Mariana Marchionni and Walter Sosa Escudero ()

Department of Economics, Working Papers from Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata

Abstract: We apply a variant of the microeconometric decomposition methodology proposed in Bourguignon et al. (1998) to assess the relevance of various factors that affected inequality in the period 1986-1998 in the Greater Buenos Aires area. The results of the paper suggest that the small change in inequality between 1986 and 1992 was the result of mild forces that compensated each other. In contrast, between 1992 and 1998 nearly all factors had some role in increasing inequality to unprecedented levels. The increase in the returns to education, changes in endowments of unobservable factors and their remunerations, and the fall in hours of work by low-income people are particularly important to explain the growth in inequality in the nineties. In contrast, although Argentina witnessed dramatic changes in the gender wage gap, the unemployment rate and the educational structure, these factors appear to have had only a mild effect on the household income distribution.

Keywords: C15; D31; I21; J23; J31 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2000-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

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Working Paper: Characterization of inequality changes through microeconometric decompositions. The case of Greater Buenos Aires (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:lap:wpaper:025

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