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The 1990S in Latin America: Another Decade of Persistent Inequality, but with Somewhat Lower Poverty

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  • Miguel Székely

Abstract

This paper processes 76 household surveys from 17 Latin American countries to document changes in poverty and inequality during the 1990s, and performs an analysis of the effect of economic reforms on inequality and poverty by using an expanded data base of 94 surveys spanning the 1977–2000 period. We show that there is no country in Latin America where inequality declined during the 1990s. Poverty declined in 10 or 11 out of the 17 countries for which household surveys are available to us, depending on the poverty measured used. Persistently high inequality inhibited further poverty reduction. One important factor contributing to the persistently high inequality level is financial liberalization. Trade liberalization and a more stable macroeconomic environment had a slight inequality-reducing effect.

Suggested Citation

  • Miguel Székely, 2003. "The 1990S in Latin America: Another Decade of Persistent Inequality, but with Somewhat Lower Poverty," Journal of Applied Economics, Taylor & Francis Journals, vol. 6(2), pages 317-339, November.
    • Handle: RePEc:taf:recsxx:v:6:y:2003:i:2:p:317-339
    DOI: 10.1080/15140326.2003.12040597
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    Cited by:

    1. Florencia Lopez Boo, 2006. "Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions," Working Papers 33, ECINEQ, Society for the Study of Economic Inequality.
    2. Manuel Fernández & Gabriela Serrano, 2022. "New Perspectives on Inequality in Latin America," Documentos CEDE 20295, Universidad de los Andes, Facultad de Economía, CEDE.
    3. Popli, Gurleen K., 2010. "Trade Liberalization and the Self-Employed in Mexico," World Development, Elsevier, vol. 38(6), pages 803-813, June.
    4. Alvaro Cuervo-Cazurra & Luis Alfonso Dau, 2009. "Structural Reform and Firm Exports," Management International Review, Springer, vol. 49(4), pages 479-507, September.

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