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The wealth distribution in developed and developing economies: comparing the United States to Chile using survey data from 2007

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  • Sofía Bauducco
  • Gonzalo Castex
  • Andrew Davis

Abstract

This study examines the distributions of income, assets, debt, and wealth within Chile, using data from the 2007 Household Financial Survey. We detail inequality at the aggregate level and also by a variety of subgroups, including age, gender, household type, employment type, and educational attainment. In comparison with data from the US Survey of Consumer Finances, we find that income and debt are more unequally distributed in Chile than in the US, but assets and wealth are more equally distributed in Chile than in the US. Our results suggest that, among common theories that seek to explain wealth inequality in the US, high payoffs to and the incentives imposed by entrepreneurship are the most plausible.

Suggested Citation

  • Sofía Bauducco & Gonzalo Castex & Andrew Davis, 2019. "The wealth distribution in developed and developing economies: comparing the United States to Chile using survey data from 2007," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 22(3), pages 154-203, December.
    • Handle: RePEc:chb:bcchec:v:22:y:2019:i:3:p:154-203
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