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Market income inequality, left-wing political parties, and redistribution in Latin America

Author

Listed:
  • Branko MILANOVIC
Abstract
The paper uses household-level data from more than 200 household income surveys from 20 Latin American and Caribbean countries to explore the (revised) median voter hypothesis and the political determinants of the recent decrease of Latin American inequality. We find that more unequal market-income countries, and greater market-income inequality within a given country, are associated with greater pro-poor redistribution, although such redistribution is rather weak in Latin America compared to the economically advanced countries. We also find that more pro-left political orientation of national legislatures has been associated with greater redistribution. We thus argue that there are political roots to the recent decrease of inequality in Latin America.

Suggested Citation

  • Branko MILANOVIC, 2019. "Market income inequality, left-wing political parties, and redistribution in Latin America," Working Paper cd1121c5-2962-4233-85cc-c, Agence française de développement.
    • Handle: RePEc:avg:wpaper:en9703
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    File URL: https://www.afd.fr/sites/afd/files/2019-06-04-57-40/market-income-inequality-latin-america.pdf
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    References listed on IDEAS

    as
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    5. Milanovic, Branko, 2000. "The median-voter hypothesis, income inequality, and income redistribution: an empirical test with the required data," European Journal of Political Economy, Elsevier, vol. 16(3), pages 367-410, September.
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    7. Bassett, William F. & Burkett, John P. & Putterman, Louis, 1999. "Income distribution, government transfers, and the problem of unequal influence," European Journal of Political Economy, Elsevier, vol. 15(2), pages 207-228, June.
    8. Corneo, Giacomo & Neher, Frank, 2015. "Democratic redistribution and rule of the majority," European Journal of Political Economy, Elsevier, vol. 40(PA), pages 96-109.
    9. Keefer, Philip & Milanovic, Branko, 2014. "Party age and party color : new results on the political economy of redistribution and inequality," Policy Research Working Paper Series 7129, The World Bank.
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    12. Leonardo Gasparini & Guillero Cruces & Leopoldo Tornarolli, 2011. "Recent Trends In Income Inequality In Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 147-201, January.
    13. Moene, Karl Ove & Wallerstein, Michael, 2001. "Inequality, Social Insurance, and Redistribution," American Political Science Review, Cambridge University Press, vol. 95(4), pages 859-874, December.
    14. Leopoldo TORNAROLLI & Matías CIASCHI & Luciana GALEANO, 2018. "Income Distribution in Latin America. The Evolution in the Last 20 Years: A Global Approach," Working Paper 0b1f0e35-82be-4853-8fac-2, Agence française de développement.
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    19. Jo Thori Lind, 2005. "Why is there so little redistribution?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 111-125.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Market income inequality, left-wing political parties, and redistribution in Latin America
      by maximorossi in NEP-LTV blog on 2020-06-04 20:05:42

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    Cited by:

    1. Leonardo Gasparini, 2019. "La Desigualdad en su Laberinto: Hechos y Perspectivas sobre Desigualdad de Ingresos en América Latina," CEDLAS, Working Papers 0256, CEDLAS, Universidad Nacional de La Plata.
    2. Giovanni Andrea Cornia, 2021. "Latin America's Income Inequality Under five Political Regimes, 1870-2018," Working Papers - Economics wp2021_12.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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    More about this item

    Keywords

    Amérique latine;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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