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A tale of two decades: Income inequality and public policy in Argentina (1996-2014)

Author

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  • Darío Judzik
  • Lucía Trujillo
  • Soledad Villafañe

Abstract

This article analyses the evolution of income inequality in Argentina through the decomposition of the Gini coefficient by income sources. The dynamic analysis allows for simultaneous changes in participation and concentration of different income sources to be understood. The time periods that are the object of the analysis contrast diverse macroeconomic contexts, labour market institutions and social protection policies that were implemented. The results indicate that labour income is the main driver of distributive dynamics while retirement income has also played an important role. We also find that the evolution of income distribution in Argentina is closely related to labour market institutions and macroeconomics. Este artículo examina la evolución de la desigualdad del ingreso Argentina, por medio de la descomposición del coeficiente de Gini por fuentes de ingreso. El análisis dinámico permite la comprensión de los cambios simultáneos en la participación y concentración de las fuentes de ingresos. El periodo de análisis contrasta contextos macroeconómicos diferentes, las instituciones del mercado de trabajo y las políticas de protección social implementadas. Los resultados indican que los ingresos laborales son el principal conductor de la dinámica distributiva y que, a su vez, los ingresos de las jubilaciones y pensiones también han tenido un papel importante. También observamos que la evolución de la distribución del ingreso en Argentina se ve afectada por la evolución de las instituciones y la macroeconomía del mercado laboral.

Suggested Citation

  • Darío Judzik & Lucía Trujillo & Soledad Villafañe, 2017. "A tale of two decades: Income inequality and public policy in Argentina (1996-2014)," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 36(72), October.
    • Handle: RePEc:col:000093:015844
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    Cited by:

    1. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Income inequality; public policy; labour market; social protection; Argentina; Latin America.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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