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Urbanization and Urban-Rural Income Inequality in Latin America

Author

Listed:
  • Buket Savranlar

    (Dr. Instructor Member Nisantasi University, Vocational School, Istanbul, Turkiye)

  • Ebru Topcu

    (Nevsehir Haci Bektas Veli University, Faculty of Economics and Administrative Sciences, Nevsehir, Turkiye)

Abstract

After the pioneering work by Kuznets (1955), the relationship between urbanization and income inequality is among the topics frequently examined in the literature. However, the number of attempts focusing on this issue in the context of rural and urban income inequality is quite limited. Therefore, the aim of this study is to examine the relationship between urbanization and urban-rural income inequality in Latin America over the period 2000-2018. Panel quantile regression results reveal that urbanization reduces both rural and urban income inequality in all quantiles. In the Latin American context, policies that support urbanization should be implemented to reduce both rural and urban income inequality. Furthermore, causality results present evidence of a bidirectional causality between urbanization and both rural and urban income inequality.

Suggested Citation

  • Buket Savranlar & Ebru Topcu, 2023. "Urbanization and Urban-Rural Income Inequality in Latin America," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(73-1), pages 261-279, June.
    • Handle: RePEc:ist:journl:v:73:y:2023:i:1:p:261-279
    DOI: 10.26650/ISTJECON2022-1195063
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    References listed on IDEAS

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    1. Wang, Xiang & Shao, Shuai & Li, Ling, 2019. "Agricultural inputs, urbanization, and urban-rural income disparity: Evidence from China," China Economic Review, Elsevier, vol. 55(C), pages 67-84.
    2. Samuel Adams & Edem Kwame Mensah Klobodu, 2019. "Urbanization, Economic Structure, Political Regime, and Income Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(3), pages 971-995, April.
    3. Amarante, Verónica & Galván, Marco & Mancero, Xavier, 2016. "Inequality in Latin America: a global measurement," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
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    Cited by:

    1. Guo, Minjia & Zong, Xiangyu & Guo, Lubingzhi & Lei, Yongyu, 2024. "Does haze-related sentiment affect income inequality in China?," International Review of Economics & Finance, Elsevier, vol. 94(C).

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    More about this item

    Keywords

    Urbanization; Income inequality; Panel quantile regression; Panel causality JEL Classification: P25 ; R10 ; R13;
    All these keywords.

    JEL classification:

    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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