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Declining Inequality in Latin America in the 2000s

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Autor: Banco Mundial
Between 2000 and 2010, the Gini coefficient declined in 13 of 17 Latin American countries. The decline was
statistically significant and robust to changes in the time interval, inequality measures, and data sources. Indepth
country studies for Argentina, Brazil, and Mexico suggest two main phenomena underlie this trend: a fall in the premium to skilled labor and more progressive government transfers. The fall in the premium to skills
resulted from a combination of supply, demand, and institutional factors. Their relative importance depends
on the country.

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