Income Inequality and Economic Growth in Latin America

Veronica Amarante

Economics PhD Theses from Department of Economics, University of Sussex Business School

Abstract: The relationship between income inequality and economic growth has generated a strong controversy both on theoretical and empirical grounds. This research reviews the theoretical literature on the links between inequality and growth, and summarizes the existing empirical evidence. It also provides new evidence for the world and, specifically, for Latin American countries. This evidence is based on macro data and a on the use of variety of econometric techniques. One of the links stressed by the economic literature, related to fertility behavior, is analyzed in depth. The study of fertility and its relation with inequality and economic growth is undertaken both at the aggregate level, based on macro data for Latin American countries, and at a country level. Country level analysis is based on micro data for a middle income country of the region, Uruguay, and is undertaken using micro simulation techniques.

Date: 2009
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