Earnings Inequality Within and Across Gender, Racial, and Ethnic Groups in Latin America

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Earnings Inequality Within and Across Gender, Racial, and Ethnic Groups in Latin America

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Wendy Cunningham (World Bank)
Joyce P. Jacobsen () (Department of Economics, Wesleyan University)

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Joyce Jacobsen

Abstract

Latin American countries are generally characterized as displaying high income and earnings inequality overall along with high inequality by gender, race, and ethnicity. However, the latter phenomenon is not a major contributor to the former phenomenon. Using household survey data from four Latin American countries (Bolivia, Brazil, Guatemala, and Guyana), we demonstrate (using Theil index decompositions as well as Gini indices, and 90/10 and 50/10 percentile comparisons) that within-group inequality rather than betweengroup inequality is the main contributor to overall inequality. Mlti-stage simulations in which the relatively disadvantaged gender and/or racial/ethnic group is treated more and more as if it were the relatively advantaged group tend to reduce overall inequality measures only slightly and in some cases have the effect of increasing inequality measures.

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Paper provided by Wesleyan University, Department of Economics in its series Wesleyan Economics Working Papers with number 2003-001.

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Length: 50 pages
Date of creation: Aug 2003
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Handle: RePEc:wes:weswpa:2003-001

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Find related papers by JEL classification:
D3 - Microeconomics - - Distribution
I3 - Health, Education, and Welfare - - Welfare and Poverty
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

François Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2002. "Beyond Oaxaca-Blinder : Accounting for Differences in Household Income Distributions Across Countries," DELTA Working Papers 2002-04, DELTA (Ecole normale supérieure). [Downloadable!]
Other versions:
- François Bourguignon & Francisco H.G. Ferreira & Phillipe G. Leite, 2002. "Beyond Oaxaca-Blinder: accounting for differences in household income distributions across countries," Textos para discussÃ£o 452, Department of Economics PUC-Rio (Brazil). [Downloadable!]
- François Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2002. "Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions Across Countries," William Davidson Institute Working Papers Series 478, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
- Bourguignon, Francois & Ferreira, Francisco H. G., 2002. "Beyond Oaxaca-Blinder : accounting for differences in household income distributions across countries," Policy Research Working Paper Series 2828, The World Bank. [Downloadable!]

Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Stephanie Seguino, 2005. "All Types of Inequality are Not Created Equal: Divergent Impacts of Inequality on Economic Growth," Economics Working Paper Archive wp_433, Levy Economics Institute, The. [Downloadable!]
Other versions:
- Stephanie Seguino, 2005. "All types of inequality are not created equal: divergent impacts of inequality on economic growth," Working Papers 10, ECINEQ, Society for the Study of Economic Inequality, revised Oct 2005. [Downloadable!]
Arun, Thankom & Borooah, Vani, 2004. "Earnings Inequality in Sri Lanka," Development Economics and Public Policy Working Papers 30548, University of Manchester, Institute for Development Policy and Management (IDPM). [Downloadable!]
Lourdes Gallardo & Hugo Nopo, 2009. "Ethnic and Gender Wage Gaps in Ecuador," RES Working Papers 4625, Inter-American Development Bank, Research Department. [Downloadable!]

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