| Abstract: |
This paper analyzes the evolution of pay inequality in Cuba from the early
1990s through 2004, during what was known as the “Special Period in Times of
Peace” and after. We measure pay inequality across sectors and regions, using
the between-groups component of Theil’s T statistic, and we map the changing
components of that statistic in order to provide a compact summary of
structural change in Cuba. This method helps us to observe the transition of
the Cuban economy from one based fundamentally on sugar to one based largely
on services, especially tourism, but also others with greater growth
potential, such as information technology, pharmaceuticals, and biotechnology.
Regionally, we observe that a main dividing line between winners and losers is
the presence of tourist attractions: the recent increase of regional pay
inequality is associated primarily with changing incomes in the city of Havana
and the province of Matanzas. |