Here, as well, regional differences are important. A recent World Bank report found that the middle class in Latin America grew by 50 million people between 2003 and 2009, an increase of 50 … According to the Inter-American Development Bank (1999), the Gini for 90 percent of the population in Latin America would be, on average, only 0.36 instead of 0.52, and in six countries income inequality would be less than that of the United States. The Gini coefficient estimates in the table are close to those reported by De Ferranti et al. But, behind these rosy figures, there is a big paradox: While conventional indicators show a significant decline in inequality, the perception among Chile’s citizens is that inequality has greatly increased — See Figure 4. The Gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality (where everyone has the same income) and 1 corresponds with perfect inequality (where one person has all the income). In fact, between 2000 and 2010, the Gini coefficient declined in thirteen of seventeen Latin American countries, although this trend started earlier in places like Brazil. As a result, poverty rates in Latin America are systematically higher than would be expected compared with other countries with similar average incomes. based on detailed micro-level data collected across eighteen countries in Latin America in 2010, 2012 and 2014. Latin America is the most unequal region in the world. What explains Latin America’s vulnerability? Key Words: Inequality, Latin America, Gini Coefficient. A Lorenz curve plots the cumulative percentages of total income received against the … For disposable income, they report an average Gini coefficient of about .5 for Latin America and an average Gini coefficient of .31 for European countries. With a Gini coefficient of 0.53 in the mid-2000s, Latin America was 18% more unequal than Sub-Saharan Africa, 36% more unequal than East Asia and the Pacific, and 65% more unequal than the high-income countries. Gini index (World Bank estimate) - Latin America & Caribbean World Bank, Development Research Group. The trouble with this hypothesis is that income inequality, as captured by household surveys, has actually been declining in Latin America for the last twenty years. On the one hand, the level of poverty and underdevelopment, although very important, does not reach the level encountered in many African countries. From an (unweighted) average of 0.530 in the late 1990s, the Gini coefficient for household per capita income 2 fell to 0.497 in 2010. Experts suggest that poverty and the region’s high levels of inequality have contributed to the relative ineffectiveness of lockdowns. For disposable income, they report an average Gini coefficient of about .5 for Latin America and an average Gini coefficient of .31 for European countries. The Gini coefficient is a measure of statistical dispersion most prominently used as a measure of inequality of income distribution or inequality of wealth distribution. Gini Coefficients and Income Gaps *Countries with urban data only. Gini coefficient for the distribution of household consumption per capita in … 13 Yet while it is true that Latin America has historically been a region of high rates of poverty and income inequality, income inequality has in fact declined in 13 of 17 countries as measured by the Gini coefficient. 1 After rising in the 1990s, however, income inequality in the 2000s unambiguously declined in the majority of countries. The differences between Latin America and Eastern Europe and Central Asia are particularly striking. Inequality in Latin America Unambiguously Declined in the 2000s. Abstract: We decompose changes in the Gini coefficient to investigate whether the Conditional Cash Tranfers (CCT) have had an inequality reducing effect in three Latin American countries: Brasil, Mexico and Chile. over 1990–2000 to 0.13 p.a. For some countries, the Gini coefficient is national while for others it is urban. Of the 18 countries with available data, 16 experienced a decline in their Gini coefficient during this period. As measured by the “gini coefficient,” inequality across Latin American countries has fallen significantly since 2000, reaching its lowest levels in 30 years. The differences between Latin America and Eastern Europe and Central Asia are particularly striking. According to the World Bank (2005), more than half the countries in Latin America have (income) Gini coefficients above 0.50. Appendix 1: Results using the Gini coefficient. The challenge is to maintain this trend. This difference in infection rates compounds like interest every week. Yes, Latin America is becoming more equal — 17 out of 19 countries experienced a decrease in their Gini Coefficient. They present two methods (direct and indirect) for calculating an education Gini index and generate a quinquennial data set on education Gini indexes for the over-15 population in 85 countries (1960–90). Eastern and Northern Europe were highly represented in … In 1980 extreme poverty affected 18.6 percent of Latin Americans (Reid 155). and World Bank (2006). In the immediate wake of colonization, the Gini coefficient rose from 0.23 to 0.35, but it then leveled off. In fact, in the 2002–2008 period inequalities decreased in 14 out of 17 continental Latin American countries, while the Gini coefficient dropped by 2.3 points on average (Gasparini and Lustig, 2011). From a weighted average of 0.548 in the late 1990s, the Gini coefficient for household per capita income 0.488 in the late fell to 2000s. The Gini coefficient estimates in the table are close to those reported by De Ferranti et al. In South America the inequality is even higher than the regional average (reaching a Gini coefficient of 0.85), while in Central America it is slightly below the average, with a coefficient of 0.75. During the first wave of the COVID-19 pandemic, one additional point of the Gini coefficient correlated with a 1.34 percentage point higher rate of weekly new infections across countries. Using data collected by the World Bank, we can estimate the Gini coefficient for a select group of Latin American countries, based on their status as developing countries and on the availability of its income equity data, including: (1) Argentina, (2) Brazil, (3) Columbia, and (4) Peru (Figure 2) … It is a measure of the inequality of a distribution, a value of 0 expressing total equality and a value of 1, maximal inequality. Venezuela, Argentina, and Uruguay were significantly over this level, meaning these nations experience greater inequlity when compared with other Latin … The decline in inequality observed in most Latin American countries after 2002 was surprisingly good news, particularly given that most developed countries were experiencing a rise in inequality at that time. 1. From 1950 to 1992, income inequality was more prevalent in Latin America than Africa, Asia, and Eastern Europe. This is a somewhat unique… According to the international financial institution, Colombia’s GINI coefficient was 53.5, the same as in 2012. reduction observed using the Gini coefficient is also observed when using the quotient of the share of income held by the richest decile and the share held by the poorest decile (graph 2, panel B). SWIID inequality estimates are based on reported Gini indices from published sources, including the OECD Income Distribution Database, the Socio-Economic Database for Latin America and the Caribbean generated by CEDLAS and the World Bank, Table 2 shows Reynolds-Smolensky (RS) indices (changes in the Gini coefficient, by convention positive for increases in equality) for fiscal flows among Latin American countries (left table) and OECD countries (right table) in the mid-2000s. Although Latin America remains the most unequal region globally, land inequalities in Asia (+30%) and Africa (+74%) increase by proportionally more – leading to Gini coefficients of above 0.70 in all regions. This fact speaks to two different issues. Despite a significant increase in income inequality in the Asia-Pacific region, its population-weighed Gini coefficient is still about 7 percentage points lower than that of Europe and more than 10 percentage points lower than that of Latin Nevertheless, Figure 3 shows that the region’s Gini coefficient fell on average since the early 2000s. and World Bank (2006). Conversely, democracy in Argentina has survived despite a steep increase in the gini measure. 3). Inequality data: Gini coefficient Data are consistently for household income per capita. Our contribution is an in-depth study of the multi-pronged growth-employment-poverty nexus based on a large number of labour market indicators (twelve employment and earnings indicators and four poverty and inequality indicators) for a large number of Latin American countries (sixteen of them). In fact, there are countries like Bolivia, Haiti or Jamaica with gini coefficients around .6. As a benchmark, 0.39 is the Gini coefficient in Iceland before redistribution. Schooling and Inequality in Latin America •On average, about 60% of the reduction in the Gini coefficient is explained by a reduction in labor income inequality •Improvements in educational attainment, measured by the schooling composition of the labor force, … But, according to recent data, many Latin American countries are now among those leading inequality reductions in the world.
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