More Unequal or Not as Rich? Revisiting the Latin American Exception
Mauricio De Rosa, (Universidad de la República, Uruguay), Ignacio Flores, (City University of New York and Paris School of Economics), and Marc Morgan, (Geneva University)
Income inequality has regained attention in academia and politics, with rising trends observed globally over the past three decades. Latin America has been seen as an exception to this trend. This paper aims to reassess the prevailing narrative of declining inequality in Latin America by adopting an innovative approach. The authors build a comprehensive dataset that combines harmonized surveys, social security and tax data, and national accounts from ten Latin American countries. This approach allows them to reconcile micro and macro income data and address critical gaps, namely, in the coverage of top/capital incomes.
Full article is available here.