The Different Sources of Income Inequality in Bolivia, Colombia, and Ecuador

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dc.description.abstract This paper analyzes the individual-level determinants of wage inequality for Bolivia, Colombia, and Ecuador over the year from 2001 to 2010. Using a rich annual data set from surveys in all three countries, we analyze wages both with conventional wage regressions and decompositions of standard Gini indices. Although popular opinion and standard Gini indices suggest Colombia to exhibit the most unequal distribution of income among these countries, our results suggest otherwise. Specifically, if one assumes educational attainment to form part of one's own responsibility the Colombian income distribution appears more equal than Bolivia's or Ecuador's. In 2010, educational achievement explains over 10.9 percent of the Gini score in Colombia, 6.3 percent in Ecuador, and a mere 2.4 percent in Bolivia. Wage regressions con rm that the average wage of a college-educated individual does not differ from the wage of a person with only (some) primary education. Our findings show that the sources of income inequality can differ substantially across countries. Respective policy prescriptions should differ accordingly. en
dc.title The Different Sources of Income Inequality in Bolivia, Colombia, and Ecuador en
dc.contributor.author Aristizabal-Ramirez, Maria
dc.contributor.author Canavire-Bacarreza, Gustavo
dc.contributor.author Jetter, Michael
dc.date.accessioned 2018-01-25T19:55:20Z
dc.date.available 2018-01-25T19:55:20Z
dc.date.issued 2018-01-25
dc.identifier.uri http://lacer.lacea.org/handle/123456789/64341
lacea.language.supported en
dc.description Working paper
dc.language.iso en
dc.subject Income Inequality
dc.subject Gini Coefficient
dc.subject Unfair Inequality
dc.type Working Paper

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