• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2012 Vol.3(5): 374-380 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2012.V3.231

The Sources of Inequality in Bolivia

Jonathan M. Fortun Vargas
Abstract—Latin America has often been depicted as one of the most unequal regions in the world. However, after the rising of inequality, the figure declines dramatically starting from the year 2000. In this setting, Bolivia has been one of the poorest performers on income distribution efforts, lately, this situation has been improving. The author investigates the dynamics of this change through an analysis of household level surveys for 4 different years (2003/04, 2005, 2008 and 2009). The research applies a method of inequality decomposition – as developed by G.S. Fields in 2003; this technique consists on regressing the expenditure of households against a vector of explanatory variables. The results suggest that education (more than other variables) has contributed on the reduction of inequality in Bolivia. Moreover, the sources of inequality are mainly attributed to the differences on human capital accumulation more than any other variables, such as the gender of the household head or the ethnical origin of the household. The results are in line with similar work made by other authors on the same issue.

Index Terms—Bolivia, Economic Development, Income Distribution, Inequality.

Jonathan M. Fortun Vargas is with Graduate School of International Cooperation Studies, Kobe University, Japan (e-mail: fortun@stu.kobe-u.ac.jp).

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Cite:Jonathan M. Fortun Vargas, "The Sources of Inequality in Bolivia," International Journal of Trade, Economics and Finance vol.3, no.5, pp. 374-380, 2012.

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