Fortun Vargas, Jonathan M. (2012): Declining inequality in Bolivia: How and Why. Published in: International Proceedings of Economics Development and Research , Vol. 43, (September 2012): pp. 180-185.
Download (551kB) | Preview
Latin America has often been depicted as one of the most unequal regions in the world. However, after the rising of inequality, the figure decline dramatically starting from the year 2000. In this setting, Bolivia has been one of the poorest performers on income distribution efforts, lately, this situation has been improving. The author investigates the dynamics of this change through an analysis of household level surveys for 4 different years (2003/04, 2005, 2008 and 2009). The research applies a method of inequality decomposition– as developed by (Fields, 2003)-, this technique consists on regressing the expenditure of households against a vector of explanatory variables. The results suggest that education (more than other variables) has contributed on the reduction of inequality in Bolivia. Moreover, the sources of inequality are mainly attributed to the differences on human capital accumulation more than any other variables, such as the gender of the household head or the ethnical origin of the household. The results are in line with similar work made by other authors on the same issue (Gray-Molina, et al., 2001; Gray Molina &Yañez, 2009)
|Item Type:||MPRA Paper|
|Original Title:||Declining inequality in Bolivia: How and Why|
|Keywords:||Economic Development, Inequality, Income Distribution, Bolivia|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General
I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty
|Depositing User:||Jonathan Fortun Vargas|
|Date Deposited:||12. Sep 2012 04:26|
|Last Modified:||22. Aug 2015 18:16|
Calvo, S. (2006). Applying the Growth Diagnostics Approach: the Case of Bolivia. The World Bank.
Faye, M. L., McArthur, J. W., Sachs, J. D., & Snow, T. (2004). The challenges facing landlocked developing countries. Journal of Human Development, 5(1), 31-68.
Ferreira, F. H. G., &Ravallion, M. (2008). Global poverty and inequality: a review of the evidence. WB Policy Research Working Paper Series, 4623.
Fields, G. S. (2003). Accounting for income inequality and its change: A new method, with application to the distribution of earnings in the United States. In S. W. Polachek (Ed.), Worker well-being and Public Policy (Research in Labor Economics) (Vol. 22, pp. 1-38). Amsterdam: Elsevier Science.
Gray-Molina, G., Jiménez, W., Pérez de Rada, E., & Yáñez, E. (2001). Poverty and assets in Bolivia: What role does social capital play. In O. Attanasio& M. Szekely (Eds.), Portrait of the poor: An assets-based approach (pp. 46-83). Washington D.C.: Inter-American Development Bank.
Gray Molina, G., &Yañez, E. (2009). The Dynamics of Inequality in the Best and Worst Times: Bolivia 1997– 2007. UNDP project “Markets, the State, and the Dynamics of Inequality: How to Advance Inclusive Growth,” coordinated by Luis Felipe López-Calva and Nora Lustig.
Grootaert, C., & Narayan, D. (2004). Local institutions, poverty and household welfare in Bolivia. World Development, 32(7), 1179-1198.
Hoffman, K., &Centeno, M. A. (2003). The lopsided continent: inequality in Latin America. Annual Review of Sociology, 363-390.
Instituto Nacional de Estadística Bolivia. (2005, 2006, 2009, 2010). Documento Metodológico Encuesta Continua de Hogares ECH-MECOVI 2003-04, 2005, 2008, 2009. La Paz: INE Bolivia.
Janvry, A., &Sadoulet, E. (2000). Growth, poverty, and inequality in Latin America: A causal analysis, 1970–94. Review of Income and Wealth, 46(3), 267-287.
Jemio, L. C. (2006). Efectos Micro- y Macroeconómicos del BONOSOL. La Paz: Fundación Milenio.
Kaufmann, D., Mastruzzi, M., & Zavaleta, D. (2002). Sustained Macroeconomic Reforms, Tepid Growth: A Governance Puzzle in Bolivia? World Bank Research Working Paper.
Klasen, S., Grosse, M., Thiele, R., Lay, J., Spatz, J., &Wiebelt, M. (2004). Operationalizing Pro-Poor Growth- Country Case Study: Bolivia. Ibero America Institute for Econ. Research (IAI) Discussion Papers.
Korzeniewicz, R. P., & Smith, W. C. (2000). Poverty, inequality, and growth in Latin America: Searching for the high road to globalization. Latin American research review, 7-54.
Leamer, E. E., Maul, H., Rodriguez, S., &Schott, P. K. (1999). Does natural resource abundance increase Latin American income inequality? Journal of Development Economics, 59(1), 3-42.
Londoño, J. L., &Székely, M. (2000). Persistent poverty and excess inequality: Latin America, 1970-1995. Journal of Applied Economics, 3(1), 93-134.
López Calva, L., &Lustig, N. (2010). Explaining the Decline in Inequality in Latin America: Technological Change, Educational Upgrading and Democracy. Declining Inequality in Latin America: a decade of progress, 1- 24.
Lora, E. (1998). Una década de reforma estructurales en América Latina: qué se ha reformado y cómo medirlo. Pensamientoiberoamericano, 27, 53.
Lustig, N., & Taylor, J. E. (1994). Mexico: The remaking of an economy. Journal of Economic Literature, 32(1), 134-134.
Merryman, J. H., & Ackerman, E. D. (1969). International law, development and the transit trade of landlocked states: The case of Bolivia: Metzner in Komm.
Sandóval, G., & Cordova, J. (1998). Grassroots organizations and local development in Bolivia: A study of the municipalities of Tiahuanacu, Mizque, Villa Serrano, and Charagua. Washington D.C.: World Bank, Social Development Family, Environmentally and Socially Sustainable Development Network.
Székely, M., &Hilgert, M. (1999). What's Behind the Inequality we Measure: An Investigation Using Latin American Data. IADB Working Papers, 409.
Unidad de Análisis de Políticas Sociales y Económicas. (2011). Dossier de estadísticas sociales y económicas de Bolivia. La Paz: UDAPE Bolivia.
Urquiola, M. (2000). Geography and development in Bolivia: migration, urban and inustrial concentration, welfare, and convergence: 1950-1992. Washington D.C.: Inter-American Development Bank.