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Poverty and Income Inequality in Latin America during the 1980s

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  • Psacharopoulos, George, et al

Abstract

On average, poverty and income inequality increased in Latin America during the 1980s. Forty-six percent of the increase in poverty took place in the cities of Brazil alone, though part of this reflects the migration of poor rural inhabitants to urban areas. There is strong evidence that both income inequality and poverty mirrored the economic cycle, rising during recession and falling during recovery. Economies that grew (e.g. Colombia, Costa Rica) performed better with respect to poverty and income inequality than those that stagnated. In particular, countries that failed to stabilize effectively (e.g. Brazil, Peru) experienced substantial increases in poverty. Educational attainment has the greatest correlation with both income inequality and the probability of being poor. From a policy standpoint, there is a clear association between the provision of education, lessening of income inequality, and poverty reduction. Coauthors are Samuel Morley, Ariel Fiszbein, Haeduck Lee, and William C. Wood. Copyright 1995 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Psacharopoulos, George, et al, 1995. "Poverty and Income Inequality in Latin America during the 1980s," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 41(3), pages 245-264, September.
    • Handle: RePEc:bla:revinw:v:41:y:1995:i:3:p:245-64
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    Cited by:

    1. Peng Jia & Yang Du & Meiyan Wang, 2017. "Rural Labor Migration and Poverty Reduction in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 25(6), pages 45-64, November.
    2. Baer, Werner & Maloney, William, 1997. "Neoliberalism and income distribution in Latin America," World Development, Elsevier, vol. 25(3), pages 311-327, March.
    3. Roy Cerqueti & Marcel Ausloos, 2015. "Statistical assessment of regional wealth inequalities: the Italian case," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2307-2323, November.
    4. Roy Cerqueti & Marcel Ausloos, 2014. "Assessing the Inequalities of Wealth in Regions: the Italian Case," Papers 1410.4922, arXiv.org.
    5. Narayan Sastry, 2002. "Trends in Socioeconomic Inequalities in Under-Five Mortality: Evidence from Sao Paulo, Brazil, 1970-1991," Working Papers 02-15, RAND Corporation.

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