The paper seeks to shed light on the evolution of income inequality in Latin-American countries for the 2002-2010 period, as well as its incidence on average regional income inequality levels. This being said, the author focuses on factors which may explain declines in inequality such as a rapid expansion of secondary education, the adoption of new fiscally-prudent development models, and more equitable macroeconomic policies, among others. Furthermore, the document suggests the region has undergone improvements in terms of trade, migrant remittances and FDI, however, world economic growth has played a less important role than expected on inequality.
The document is organized as follows. After a brief introduction, section one analyzes regional trends in income inequality, whilst chapter two presents the theoretical framework introduced by the author. Meanwhile, section three sheds light on some of the underlying causes of the decline in income inequality in Latin America during the 2002-2009 period, whereas section four describes the regression analysis developed during the investigation. Finally, section five provides some concluding arguments on the subject.
To conclude, the author claims that the results suggest that over the last two decades, some countries of Latin America have enjoyed sizeable drops of income inequality, thereby benefiting both the poor and, in many cases, also the middle class. However, despite the recent decline, inequality levels in most Latin-American countries remain extremely high.