73rd International Atlantic Economic Conference

March 28 - 31, 2012 | Istanbul, Turkey

Declining Inequality in Latin America During the 2000s

Friday, 30 March 2012: 5:10 PM
Joshua Hall, PhD , Economics, University of Tampa, Tampa, FL
Latin America is associated with a high and increasing level of inequality.
This trend, however, has reversed during the 2000s.  Why has inequality
fallen during this decade?  This paper looks at educational attainment and
globalization factors for Latin American countries using new SEDLAC data.
Education is paramount to the fall in inequality.  Greater educational
attainment and a higher quality of education is associated with lower
inequality.  After controlling for education, inflows of foreign direct
investment is positively related to the level of inequality.  Imports during
the 1990s from high income countries is shown to increase income inequality,
but decrease inequality during the 2000s.