 Why have poverty and income inequality increased so much? Argentina 1991-2002Martin Gonzalez-Rozada and Alicia Menendez Business School Working Papers from Universidad Torcuato Di Tella Abstract: This paper analyzes the sources of changes in poverty and income inequality among Argentine households during the 1991-2001 period. We assess the e ect of changes in labor market participation, unemployment, education levels, and returns to human capital on income inequality and poverty by using a micro-simulation approach. This procedure allows us to evaluate the impact of each one of those changes on several measures of income inequality and poverty during the nineties. We found that unemployment accounts for a large part of the increase in income inequality and poverty that this country experienced in the last decade. In January 2002, Argentina declared the default on its external debt and devaluated the peso 40% ending the convertibility period. Since then, a growing inflation is a ecting the purchasing power of Argentine households for the first time in more than ten years. Using our methodology we estimate the e ect of the emerging inflation on poverty among households. Our findings indicate that inflation increases poverty significantly at least in the short run. Pages: 32 pages Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:udt:wpbsdt:treintayuno Access Statistics for this paper More papers in Business School Working Papers from Universidad Torcuato Di Tella Contact information at EDIRC. |
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