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Market and Inequality Revisited

Author

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  • Mercado, Alejandro F.

    (IISEC, Universidad Católica Boliviana)

  • Aguilar, Tirza J.

    (IISEC, Universidad Católica Boliviana)

Abstract

The great controversy regarding the results of the application of market-oriented policies on the population's conditions of life, especially about the inequality in the distribution of income, has constituted the concern that has given origin to this paper. With the objective to test the hypothesis that a free market structure promotes a better income distribution, we have carried out several quantifications of inequality indices in the different structures of the labor market in Bolivia; also, a microsimulation model has been applied, to see whether change toward a market-oriented structure can improve the distribution of income and, lastly, we have carried out an exercise to link income inequality with social mobility. The reached results, although they are not the sufficiently strong to validate the hypothesis, are sufficiently clear to show us that the free market policies do not act in a negative way on the income distribution. Instituto de Investigaciones Socio - Económicas, IISEC

Suggested Citation

  • Mercado, Alejandro F. & Aguilar, Tirza J., 2006. "Market and Inequality Revisited," Documentos de trabajo 1/2006, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    • Handle: RePEc:ris:iisecd:2006_001
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    Cited by:

    1. Beatriz Muriel Hernández, 2016. "An Analysis of Firm Characteristics as Earnings Determinants: The Urban Bolivia Case," Development Research Working Paper Series 04/2016, Institute for Advanced Development Studies.

    More about this item

    Keywords

    Economic Structure in Bolivia; Market; Instituto de Investigaciones Socio - Económicas; IISEC;
    All these keywords.

    JEL classification:

    • Z00 - Other Special Topics - - General - - - General

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