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Functional Inequality in Latin America: News from the Twentieth Century

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  • Pablo Astorga

Abstract

This paper presents a new consistent yearly series of gross income (between-group) inequality Ginis for four occupational categories in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela over the period 1900-2011 using a newly assembled wage dataset. The approach used differentiates labour by skill level and allows for changing allocation of the labour force over time. Profits and rents are calculated as a residual. Our regional Gini shows a changing secular process with a reclined "S" shape with an inflection point around 1940 and a peak in the 1990s. There are mixed country trends in the early and middle decades, but in most cases inequality was on the rise in the 1960s. There was also a tendency for narrowing wage inequality in the middle decades of the last century - at the time of the Great Levelling in the developed economies - but whose impact was more than off-set by a rising share of the top group. Inequality in the 20th century is a story of increased polarisation - particularly post 1970 - amid significant social mobility.

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  • Pablo Astorga, 2015. "Functional Inequality in Latin America: News from the Twentieth Century," Oxford Economic and Social History Working Papers _135, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:esohwp:_135
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    Cited by:

    1. Leticia Arroyo Abad & Pablo Astorga Junquera, 2017. "Latin American earnings inequality in the long run," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(3), pages 349-374, September.
    2. Pablo Astorga Junquera, 2017. "Real Wages and Skill Premiums during Economic Development in Latin America," Oxford Economic and Social History Working Papers _153, University of Oxford, Department of Economics.
    3. Gustavo Canavire-Bacarreza & Luis C. Carvajal-Osorio, 2020. "Two Stories of Wage Dynamics in Latin America: Different Policies, Different Outcomes," Journal of Labor Research, Springer, vol. 41(1), pages 128-168, June.
    4. John Scott & Enrique de la Rosa & Rodrigo Aranda, 2017. "Inequality and fiscal redistribution in Mexico: 1992–2015," WIDER Working Paper Series 194, World Institute for Development Economic Research (UNU-WIDER).
    5. Bengtsson, Erik & Waldenström, Daniel, 2018. "Capital Shares and Income Inequality: Evidence from the Long Run," The Journal of Economic History, Cambridge University Press, vol. 78(3), pages 712-743, September.
    6. Eslava Saenz, Francisco & Valencia Caicedo, Felipe, 2023. "Origins of Latin American Inequality," CEPR Discussion Papers 18263, C.E.P.R. Discussion Papers.
    7. John Scott & Enrique de la Rosa & Rodrigo Aranda, 2017. "Inequality and fiscal redistribution in Mexico: 1992-2015," WIDER Working Paper Series wp-2017-194, World Institute for Development Economic Research (UNU-WIDER).
    8. John Scott & Enrique de la Rosa & Rodrigo Aranda, 2017. "Inequality and Fiscal Redistribution in Mexico," Commitment to Equity (CEQ) Working Paper Series 65, Tulane University, Department of Economics.
    9. Gazeley, Ian & Holmes, Rose & Lanata Briones, Cecilia & Newell, Andrew T. & Reynolds, Kevin & Rufrancos, Hector Gutierrez, 2018. "Latin American Household Budget Surveys 1913-1970 and What They Tell Us about Economic Inequality among Households," IZA Discussion Papers 11430, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    economic history; economic development; income inequality; Latin America;
    All these keywords.

    JEL classification:

    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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