Income Inequality Latin America
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Income inequality is falling in latin america even as it rises elsewhere in the world according to a world bank study that encourages government intervention to reduce the wealth gap.
Income inequality latin america. However latin america remains the most unequal region in the world. This is important because inequality is directly related to poverty reduction. As economist claudio lozano explains in. Inequality of incomes before and after taxes and transfers.
Inequality of incomes before and after taxes and transfers. While the average for oecd countries is around 35 the latin american average is close to 20. The main reason latin america fails to reduce inequality is the precarious tax system and its weak redistributive power. Share of income received by the richest 1 of the population.
Share of total income going to the top 1. Households 1990 2019 gini index for income distribution equality. According to world bank data latin american countries have the lowest tax burden. This study documents the declining trend in income.
And without taxes there is no equality. Income shares by quintile. Wealth inequality based on income concentration by country 2018 gini index for income distribution equality for u s. Total income is a combination of wage and household incomes the good news is that latin america is the region to have made the most progress in evening out the odds since the turn of the century lowering its gini index for wage inequality by 6 points from 2002 to 2013 according to the most recent data available.
Inequality in 1990 vs 2015. The most unequal region in the world latin america has the highest level of inequality in the world despite having made notable gains.
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