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Vertical and horizontal inequality in Ecuador: The lack of sustainability

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  • Iván Gachet
  • Diego F. Grijalva
  • Paúl Ponce
  • Damián Rodríguez

Abstract

We analyse vertical and horizontal inequality in Ecuador from a long-run perspective, as well as during and after the commodities boom. Using various data sources we show that Ecuador has made significant progress in reducing inequality, particularly since 2000. However, inequality has started to increase again starting in 2015. We provide preliminary evidence that the trend reversal is consistent with Ecuador's dependency on oil revenues. Once the commodities boom ended, government policies aimed at reducing inequality turned out to be unsustainable and inequality started to rise again.

Suggested Citation

  • Iván Gachet & Diego F. Grijalva & Paúl Ponce & Damián Rodríguez, 2016. "Vertical and horizontal inequality in Ecuador: The lack of sustainability," WIDER Working Paper Series wp-2016-106, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2016-106
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    2. Fabio Andrés Díaz Pabón & María Gabriela Palacio Ludeña, 2021. "Inequality and the Socioeconomic Dimensions of Mobility in Protests: The Cases of Quito and Santiago," Global Policy, London School of Economics and Political Science, vol. 12(S2), pages 78-90, April.
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    4. Marta Guijarro-Garvi & Belén Miranda-Escolar & Yira Tatiana Cedeño-Menéndez & Pedro Benito Moyano-Pesquera, 2024. "Does geographical location impact educational disparities among Ecuadorians? A novel two-stage inequality decomposition method," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    5. Priscilla, Laishram & Singh, Oinam Krishnadas & Vatta, Kamal, 2021. "Effects of Income Sources on Inequality among Agricultural Households in North-east India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 4), December.
    6. Federico Attili, 2024. "Uncovering Complexities in Horizontal Inequality: A Novel Decomposition of the Gini Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 173(2), pages 351-376, June.
    7. Diego F. Grijalva, 2017. "The rise of the middle class in Ecuador during the oil boom," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 36(72), October.
    8. Oscar Zapata, 2024. "Unequally Happy: Happiness Inequality Across Satisfaction Domains in a Developing-Country Context," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 19(6), pages 3129-3151, December.

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