IDEAS home Printed from https://ideas.repec.org/a/udc/esteco/v38y2011i1p223-242.html
   My bibliography  Save this article

A cohort analysis of the income distribution in Chile

Author

Listed:
  • Claudio Sapelli

Abstract

In this paper we look at the income distribution by cohort in Chile. We construct a synthetic panel from cross section surveys and estimate the income distribution for cohorts born between 1902 and 1978. We then decompose the evolution of these distributions into age, year and cohort effects. The cohort effects show a period where inequality increases, to then decrease. We attempt to explain this evolution. The rise can be explained by variables associated with education, while the fall appears to be the consequence of a flattening of the income-age profile and hence a reduction in the returns to experience.

Suggested Citation

  • Claudio Sapelli, 2011. "A cohort analysis of the income distribution in Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 38(1 Year 20), pages 223-242, June.
    • Handle: RePEc:udc:esteco:v:38:y:2011:i:1:p:223-242
    as

    Download full text from publisher

    File URL: http://www.econ.uchile.cl/uploads/publicacion/fbd5da6d5139cf36a6c294eee9a60915c287c69e.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    2. Zvi Eckstein & Eva Nagypal, 2004. "The evolution of U.S. earnings inequality: 1961?2002," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 28(Dec), pages 10-29.
    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, May.
    4. Ricardo Paredes & Victor Lima, 2004. "Labor Market Regimes and Mobility through a Markov Chain in Chile," Econometric Society 2004 Latin American Meetings 317, Econometric Society.
    5. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    6. Claudio Sapelli., 2009. "Los Retornos a la Educación en Chile: Estimaciones por Corte Transversal y por Cohortes," Documentos de Trabajo 349, Instituto de Economia. Pontificia Universidad Católica de Chile..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mac-Clure, Oscar, 2012. "Chile's new middle classes: a cohort analysis," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Contreras, Dante & Gallegos, Sebastian & Meneses, Francisco, 2009. "Determinantes del desempeño universitario: ¿Importa la habilidad relativa? [University performance determinants: does relative ability matter?]," MPRA Paper 23320, University Library of Munich, Germany.
    3. Claudio, Sapelli, 2014. "Desigualdad, movilidad, pobreza: necesidad de una política diferente," Estudios Públicos, Centro de Estudios Públicos, vol. 0(134), pages 59-84.
    4. Harry Aginta & Debby A. Soraya & Wahyu B. Santoso, 2018. "Financial Development and Income Inequality in Indonesia: A Sub-national Level Analysis," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 64, pages 111-130, Desember.
    5. Jaime Ruiz-Tagle, 2007. "Forecasting wage inequality," Estudios de Economia, University of Chile, Department of Economics, vol. 34(2 Year 20), pages 141-162, December.
    6. Estéfano rubio, 2016. "El diálogo de dos desafíos: evolución y relación de la desigualdad y la escolaridad en Chile," Puntos de Referencia DPP-15, Centro de Estudios Públicos.
    7. Claudia Sanhueza & Ricardo Mayer, 2011. "Top Incomes in Chile using 50 years of household surveys : 1957-2007," Estudios de Economia, University of Chile, Department of Economics, vol. 38(1 Year 20), pages 169-193, June.
    8. Diego Battistón & Carolina García-Domench & Leonardo Gasparini, 2014. "Could an Increase in Education Raise Income Inequality? Evidence for Latin America," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 51(1), pages 1-39, May.
    9. López, Ramón & Miller, Sebastian J., 2008. "Chile: The Unbearable Burden of Inequality," World Development, Elsevier, vol. 36(12), pages 2679-2695, December.
    10. Aginta, Harry & Soraya, Debby A & Santoso, Wahyu B, 2018. "Financial Development and Income Inequality in Indonesia: A Sub-national Level Analysis," MPRA Paper 97655, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Felipe Andrés Lozano-Rojas, 2012. "Human Capital Contracts in Chile: An Exercise Based on Income Data on chilean HE Graduates," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(2), pages 185-215, November.
    2. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 31-57.
    3. Katarzyna Growiec & Jakub Growiec, 2016. "Bridging Social Capital and Individual Earnings: Evidence for an Inverted U," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 601-631, June.
    4. Kaspar W thrich, 2013. "Set Identification of Generalized Linear Predictors in the Presence of Non-Classical Measurement Errors," Diskussionsschriften dp1304, Universitaet Bern, Departement Volkswirtschaft.
    5. Schultz, T. Paul, 2009. "The Gender and Generational Consequences of the Demographic Transition and Population Policy: An Assessment of the Micro and Macro Linkages," Working Papers 71, Yale University, Department of Economics.
    6. Emanuela di Gropello, 2006. "Meeting the Challenges of Secondary Education in Latin America and East Asia : Improving Efficiency and Resource Mobilization," World Bank Publications - Books, The World Bank Group, number 7173.
    7. Aidis, Ruta & van Praag, Mirjam, 2007. "Illegal entrepreneurship experience: Does it make a difference for business performance and motivation?," Journal of Business Venturing, Elsevier, vol. 22(2), pages 283-310, March.
    8. Benoit Dostie & Pierre Thomas Léger, 2014. "Firm-Sponsored Classroom Training: Is It Worth It for Older Workers?," Canadian Public Policy, University of Toronto Press, vol. 40(4), pages 377-390, December.
    9. Zeng, Jinli & Zhang, Jie, 2022. "Education policies and development with threshold human capital externalities," Economic Modelling, Elsevier, vol. 108(C).
    10. Yi Fan, 2017. "Does Adversity Affect Long-Term Consumption and Financial Behaviour? Evidence from China's Rustication Programme," ERES eres2017_148, European Real Estate Society (ERES).
    11. Heckman, James J. & Urzúa, Sergio, 2010. "Comparing IV with structural models: What simple IV can and cannot identify," Journal of Econometrics, Elsevier, vol. 156(1), pages 27-37, May.
    12. Sandra Nieto & Raúl Ramos, 2013. "Non-Formal Education, Overeducation And Wages," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 21(1), pages 5-28, Spring.
    13. Galama, Titus & Kapteyn, Arie, 2011. "Grossman’s missing health threshold," Journal of Health Economics, Elsevier, vol. 30(5), pages 1044-1056.
    14. Cawley, John & Morrisey, Michael A., 2007. "The earnings of U.S. health economists," Journal of Health Economics, Elsevier, vol. 26(2), pages 358-372, March.
    15. Steffen Hillmert, 2002. "Labour Market Integration and Institutions: An Anglo-german Comparison," Work, Employment & Society, British Sociological Association, vol. 16(4), pages 675-701, December.
    16. Ilhom Abdulloev & Ira N Gang & Myeong-Su Yun, 2014. "Migration, Education and the Gender Gap in Labour Force Participation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 509-526, September.
    17. Contreras, Dulce/D & Sánchez, Rosario/R & Soria, Delfina/D, 2012. "Mobility, wages and gender across Europe," MPRA Paper 42589, University Library of Munich, Germany, revised Nov 2012.
    18. James J. Heckman, 2019. "The Race Between Demand and Supply: Tinbergen’s Pioneering Studies of Earnings Inequality," De Economist, Springer, vol. 167(3), pages 243-258, September.
    19. Peydró, José-Luis & Jasova, Martina & Mendicino, Caterina & Panetti, Ettore & Supera, Dominik, 2021. "Monetary Policy, Labor Income Redistribution and the Credit Channel: Evidence from Matched Employer-Employee and Credit Registe," CEPR Discussion Papers 16549, C.E.P.R. Discussion Papers.
    20. Guillermina Jasso, 1996. "Exploring the Reciprocal Relations between Theoretical and Empirical Work," Sociological Methods & Research, , vol. 24(3), pages 253-303, February.

    More about this item

    Keywords

    Synthetic cohorts; Income distribution; Rates of return; Education.;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:udc:esteco:v:38:y:2011:i:1:p:223-242. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Verónica Kunze (email available below). General contact details of provider: https://edirc.repec.org/data/deuclcl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.