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Statistical Inference for Testing Gini Coefficients: An Application for Colombia

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  • Luisa Fernanda Gamboa
  • Andrés García-Suaza
  • Jesús Otero

Abstract

This paper uses Colombian household survey data collected over the 1984-2005 period to estimate Gini coefficients and their corresponding standard errors. We find a statistically significant increase in wage income inequality following the adoption of the liberalization measures during the early 1990s, and mixed evidence from the recovery years that followed the economic recession during the late 1990s. We also find that in several cases the observed differences in the Gini coefficients across cities have not been statistically significant.

Suggested Citation

  • Luisa Fernanda Gamboa & Andrés García-Suaza & Jesús Otero, 2010. "Statistical Inference for Testing Gini Coefficients: An Application for Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 28(62), pages 226-238, June.
    • Handle: RePEc:bdr:ensayo:v:28:y:2010:i:62:p:226-238
    DOI: 10.32468/Espe.6206
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    1. Baer, Werner & Maloney, William, 1997. "Neoliberalism and income distribution in Latin America," World Development, Elsevier, vol. 25(3), pages 311-327, March.
    2. Arango Luis Eduardo & Andrés Felipe Garcia & Carlos Esteban Posada, 2008. "La metodología de la Encuesta Continua de Hogares y el empalme de las series del mercado laboral urbano de Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, May.
    3. Davidson, Russell, 2009. "Reliable inference for the Gini index," Journal of Econometrics, Elsevier, vol. 150(1), pages 30-40, May.
    4. Javier A. Birchenall, 2007. "Income distribution and macroeconomics in Colombia," Journal of Income Distribution, Ad libros publications inc., vol. 16(2), pages 6-24, June.
    5. Birchenall, Javier A., 2001. "Income distribution, human capital and economic growth in Colombia," Journal of Development Economics, Elsevier, vol. 66(1), pages 271-287, October.
    6. Cunningham, Wendy & Jacobsen, Joyce P., 2008. "Earnings inequality within and across gender, racial, and ethnic groups in four Latin American Countries," Policy Research Working Paper Series 4591, The World Bank.
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    More about this item

    Keywords

    Inequality; Gini Coefficient; Bootstrap; Colombia;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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