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The 1990s in Latin America: Another Decade of Persistent Inequality, but with Somewhat Lower Poverty

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  • Szekely, Miguel

Abstract

This paper processes 76 household surveys from 17 Latin American countries to document changes in poverty and inequality during the 1990s, and performs an analysis of the effect of economic reforms on inequality and poverty by using an expanded data base of 94 surveys spanning the 1977-2000 period. We show that there is no country in Latin America where inequality declined during the 1990s. Poverty declined in 10 or 11 out of the 17 countries for which household surveys are available to us, depending on the poverty measured used. Persistently high inequality inhibited further poverty reduction. One important factor contributing to the persistently high inequality level is financial liberalization. Trade liberalization and slight inequality-reducing effect.

Suggested Citation

  • Szekely, Miguel, 2003. "The 1990s in Latin America: Another Decade of Persistent Inequality, but with Somewhat Lower Poverty," Journal of Applied Economics, Universidad del CEMA, vol. 6(2), pages 1-26, November.
    • Handle: RePEc:ags:jaecon:43997
    DOI: 10.22004/ag.econ.43997
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    References listed on IDEAS

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    1. Miguel Székely & Marianne Hilgert, 1999. "What's Behind the Inequality We Measure: An Investigation Using Latin American Data," IDB Publications (Working Papers) 6458, Inter-American Development Bank.
    2. Marianne Hilgert & Miguel Sz kely, 1999. "Whats Behind the Inequality We Measure? An Investigation Using Latin American Data," LIS Working papers 234, LIS Cross-National Data Center in Luxembourg.
    3. Székely, Miguel & Hilgert, Marianne, 1999. "What's Behind the Inequality We Measure: An Investigation Using Latin American Data," IDB Publications (Working Papers) 1309, Inter-American Development Bank.
    4. Machado, Roberto & Morley, Samuel A. & Pettinato, Stefano, 1999. "Indexes of structural reform in Latin America," Series Históricas 7453, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Altimir, Oscar, 1994. "Income distribution and poverty through crisis and adjustment," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
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    Cited by:

    1. Florencia Lopez Boo, 2006. "Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions," Working Papers 33, ECINEQ, Society for the Study of Economic Inequality.
    2. Manuel Fernández & Gabriela Serrano, 2022. "New Perspectives on Inequality in Latin America," Documentos CEDE 20295, Universidad de los Andes, Facultad de Economía, CEDE.
    3. Popli, Gurleen K., 2010. "Trade Liberalization and the Self-Employed in Mexico," World Development, Elsevier, vol. 38(6), pages 803-813, June.
    4. Alvaro Cuervo-Cazurra & Luis Alfonso Dau, 2009. "Structural Reform and Firm Exports," Management International Review, Springer, vol. 49(4), pages 479-507, September.

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    Keywords

    Food Security and Poverty;

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