Publication:
Understanding the Dynamics of Labor Income Inequality in Latin America

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dc.contributor.authorValderrama, Daniel
dc.contributor.authorRodriguez Castelan, Carlos
dc.contributor.authorLopez-Calva, Luis F.
dc.contributor.authorLustig, Nora
dc.date.accessioned2016-09-12T20:48:43Z
dc.date.available2016-09-12T20:48:43Z
dc.date.issued2016-08
dc.description.abstractSince the early 2000s, after a long period of wide and persistent gaps, Latin America has experienced a steady decline in income inequality. This paper presents evidence of a trend reversal in labor income inequality, which is considered the main factor behind such a decline in income inequality across the region. The analysis shows that, while labor income inequality increased during the 1990s, with heterogeneous experiences across countries, it fell in a synchronized way across countries beginning in the early 2000s. This systematic decline was supported by an expansion in real hourly earnings among the bottom of the wage distribution and, to a lesser extent, the middle part of the earnings distribution, thus reducing upper and lower tail inequality. This trend reversal is explained by a lower dispersion of earnings among workers with observable different attributes and by a much less extensive dispersion of residual labor inequality. Regarding the earnings differentials among workers with observable different attributes, the analysis concludes that the decline in labor inequality in Latin America has been closely associated with a reduction in the college/primary education premium and in the urban-rural earnings gap, coupled with a steady drop in the high school/primary education premium, which accelerated markedly since the 2000s, as well as a reduction in the experience premium across all age groups.en
dc.identifierhttp://documents.worldbank.org/curated/en/2016/08/26695881/understanding-dynamics-labor-income-inequality-latin-america
dc.identifier.doi10.1596/1813-9450-7795
dc.identifier.urihttps://hdl.handle.net/10986/25040
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7795
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectinequality
dc.subjectlabor income
dc.subjecteducation premium
dc.subjectlabor market
dc.subjectexperience premium
dc.titleUnderstanding the Dynamics of Labor Income Inequality in Latin Americaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleUnderstanding the Dynamics of Labor Income Inequality in Latin America
okr.date.disclosure2016-08-15
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2016/08/26695881/understanding-dynamics-labor-income-inequality-latin-america
okr.guid361751471274897849
okr.identifier.doi10.1596/1813-9450-7795
okr.identifier.doihttps://doi.org/10.1596/1813-9450-7795
okr.identifier.externaldocumentum090224b0844ec476_1_0
okr.identifier.internaldocumentum26695881
okr.identifier.reportWPS7795
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/08/15/090224b0844ec476/1_0/Rendered/PDF/Understanding00ity0in0Latin0America.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.geographicalLatin America
okr.topicPoverty Reduction::Inequality
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Skills Development and Labor Force Training
okr.unitPoverty and Equity Global Practice Group
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