Work

The Pink Tide and Income Inequality in Latin America

Year: 2023

Type: article

Abstract: ABSTRACT Latin American countries experienced a significant reduction in income inequality at the turn of the twenty-first century. From the early 2000s to around 2012, the average Gini coefficient fell from 0.51 to 0.47. The period of falling inequality coincided with leftist presidential candidates achieving electoral victories across the region: by 2009, 11 of the 17 countries had a leftist president—the so-called Pink Tide. Using a difference-in-differences design, a range of econometric models, inequality measurements, and samples, this study finds evidence that leftist governments lowered income inequality faster than non-leftist regimes, increasing the income share captured by the first 7 deciles at the expense of the top 10 percent. The analysis suggests that this reduction was achieved by increasing social pensions, minimum wages, and tax revenue.

Source: Latin American Politics and Society

DOI: 10.1017/lap.2022.47

Authors: Germán Feierherd, Patricio Larroulet, Wei Long, Nora Lustig

Institutions: University of San Andrés, Tulane University

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Reduced inequalities, Peace, justice, and strong institutions, No poverty

Open Access status: hybrid

Estimated APC paid: $3,255