Changes in Labour Market Conditions and Policies, and their Impact on Wage Inequality during the Last Decade

KEIFMAN, SAÚL; MAURIZIO, ROXANA

Falling Inequality in Latin America: Policy Changes and Lessons

Oxford University Press

Lugar: Oxford; Año: 2014; p. 251 - 273

Labor market incomes have been a major contributor to the important fall in inequality in Latin America during the 2000s. Indeed, it was the main contributor in the countries in which inequality fell more dramatically. A proper understanding of the workings of the labor market is necessary to comprehend why inequality fell, what lies ahead of us and what we can do to achieve more equitable societies in Latin America. Social progress was real in the last decade but we should not overlook the structural deficits which still remain in Latin American labor markets. Inequality fell more dramatically where formality rose faster and real minimum wages increased more significantly. Labor market institutions have a played positive role in reducing inequity in the last decade.