nep-lam New Economics Papers
on Central and South America
Issue of 2022‒12‒05
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Diagnóstico multidimensional sobre las desigualdades en Colombia By Jairo Núnez Méndez; Juan Manuel Monroy; Juan David Ramírez; David Nicolás Lasso
  2. More Unequal or Not as Rich? Revisiting the Latin American Exception By De Rosa, Mauricio; Flores, Ignacio; Morgan, Marc
  3. Decentralized Governance and Climate Change in Latin America and the Caribbean By Mar’a Dolores Almeida; Hu‡scar Eguino; Juan Luis G—mez Reino; Axel Radics

  1. By: Jairo Núnez Méndez; Juan Manuel Monroy; Juan David Ramírez; David Nicolás Lasso
    Abstract: Según la CEPAL, la desigualdad en Colombia fue la más alta de América Latina incluso por encima de Brasil en 2020. Si bien, de 2010 a 2017, se observa una reducción de estos indicadores, a partir del 2017, se ha presentado un aumento de estos que puede ser atribuida a un menor desempeno del mercado laboral y a la pandemia causada por el COVID-19. De esta forma, este documento busca explorar y analizar las desigualdades en Colombia a partir de cinco aspectos: i) ingresos, ii) mercado laboral, iii) consumo, iv) bienes, activos y servicios del hogar y v) riqueza. Utilizando información de la Gran Encuesta Integrada de Hogares, la Encuesta Nacional de Presupuesto de los Hogares y la Encuesta de Calidad de Vida, se busca estimar la desigualdad en estas cinco dimensiones y comparando por género, grupos étnicos, ubicación geográfica, entre otros. Así, las mayores desigualdades se observan al analizar la propiedad de la tierra y a la tenencia de activos financieros. Además, la desigualdad es mayor en hogares cuya jefatura del hogar corresponde a una mujer y si se autorreconocen como indígenas. A nivel laboral, se observa que los quintiles más ricos tienen mayores tasas de ocupación y menores de desempleo en comparación con los quintiles más pobres mientras que, de acuerdo con el acceso a servicios públicos, la salud y la energía eléctrica son casi universales pero los más ricos tienen un mayor acceso a internet, acueducto, servicio continuo de agua potable, calidad de vivienda y servicios de aseo. Finalmente, la desigualdad también tiene un componente geográfico puesto que el ingreso medio de Bogotá es mucho mayor en comparación con otros departamentos como el Chocó, lo cual también se ve representando en mayores niveles de escolaridad, formalidad laboral, acceso a servicios públicos, entre otros.******Abstract: According to ECLAC, inequality in Colombia was the highest in Latin America, even above Brazil in 2020. Although, from 2010 to 2017, there was a reduction in these indicators, as of 2017, there has been an increase of these that can be attributed to a lower labor market performance and the pandemic caused by COVID-19. In this way, this document seeks to explore and analyze inequalities in Colombia based on five aspects: i) income, ii) labor market, iii) consumption, iv) household goods, assets and services, and v) wealth. Using information from different surveys in Colombia, the aim is to estimate inequality in these five dimensions and comparing by gender, ethnic groups, geographic location, among others. Thus, the greatest inequalities are observed when analyzing land ownership and financial assets holding. In addition, inequality is greater in households headed by a woman and if they self-identify as indigenous. At the labor level, it is observed that the richest quintiles have higher employment rates and lower unemployment rates compared to the poorest quintiles while, according to access to public services, health and electricity are almost universal but the richest have greater access to the internet, water service, quality of housing and cleaning services. Finally, inequality also has a geographic component since the average income of Bogotá is higher compared to other departments such as Chocó, which is also reflected in higher levels of schooling, formal employment, access to public services, among others.
    Keywords: Desigualdad, Ingresos, RiquezaConsumo, Mercado Laboral, Género, Bienes Activos y Servicios, Inequality, Income, Wealth, Consumption, Labor Market, Gender, Goods, Assets and Services
    JEL: D63 D33 E01 O15
    Date: 2022–10–31
  2. By: De Rosa, Mauricio; Flores, Ignacio; Morgan, Marc
    Abstract: Latin America is often portrayed as a global exception to the rising or consolidating inequality trends of the early twenty-first century. However, the use of administrative data and macroeconomic aggregates casts doubts on this survey-based narrative. In this paper we ask whether the region was exceptional after all. We address this question by building the most comprehensive database thus far, which accounts for 80% of the region's population and combines harmonized surveys, social security and tax data, and national accounts. We produce a set of inequality indicators—pre- and post-tax, based on alternative units and income definitions—which allows us to track the distributional effects of each methodological decision and reconcile divergent trends. The reconciliation of micro and macro data present us with a dilemma: either the region is more unequal than previously thought or it is not as rich. While the downward inequality trend did exist for some countries, it is not present for the entire region. The falling inequality narrative does hold for the bottom 99% post-tax incomes—more so when social spending is considered—but flattens or reverses in the largest economies once capital incomes and the top 1% are better accounted for. These results confirm the strengths and highlight the limits of Latin America's redistributive policies during the period. (Stone Center on Socio-Economic Inequality Working Paper)
    Date: 2022–08–24
  3. By: Mar’a Dolores Almeida (Inter-American Development Bank); Hu‡scar Eguino (Inter-American Development Bank); Juan Luis G—mez Reino (Inter-American Development Bank); Axel Radics (Inter-American Development Bank)
    Abstract: This paper looks at climate change in decentralized Latin American and Caribbean countries to address two main goals. First, to systematize the main subnational climate initiatives in fiscal decentralization, administrative decentralization, and intergovernmental coordination implemented in the LAC region. Second, to contribute prospectively with potential lines of action related to decentralization and climate change policy measures that will make it possible to sustain the current achievements, as well as to manage climate related risks in the future. Three central questions are explored: How involved have subnational governments been in managing the response to climate change in terms of mitigation and adaptation in LAC? What fiscal decentralization policies and instruments support the development and implementation of SNG climate actions? What policies and instruments of administrative decentralization support the development and implementation of the SNGs climate actions? The authors offer a series of seven prospective actions to address these questions.
    Date: 2022–11

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