Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

POVERTY AND INCOME DISTRIBUTION IN CHILE 1987-1998. NEW EVIDENCE

Dante Contreras, Osvaldo Larrañaga, Julie Litchfield and Alberto Valdés
Cuadernos de Economía
Año 38, No. 114, On the Economics of Poverty and Income Distribution in Latin America and the Caribbean (Agosto 2001), pp. 191-208
Stable URL: http://www.jstor.org/stable/41951393
Page Count: 18
  • Read Online (Free)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
POVERTY AND INCOME DISTRIBUTION IN CHILE 1987-1998. NEW EVIDENCE
Preview not available

Abstract

This paper presents an update on the poverty and income distribution situation in Chile during the 90s. The analysis shows unambiguously that there was less poverty between 1994 and 1998 than in all earlier years, whether poverty is measured by the headcount, the poverty deficit or by any of the most sensitive poverty indices. The evidence also confirms that income inequality in Chile remains high by international standards. Nevertheless, notwithstanding the earlier observation, the overall picture on inequality is one of a fairly stable distribution for the period as a whole, with changes in income shares being relatively small in proportion to the size of the shares themselves. In addition, this study develops and applies a methodology for the estimation of the imputed income transfers from government subsidies in health, education, and housing, for the years 1990, 1994, 1996 and 1998. The analysis has confirmed that adjustments for in-kind income transfers substantially reduce the Gini coefficient on income inequality. For 1998, this coefficient falls from 0.56 (unadjusted) to 0.50 (adjusted) and the ratio of the highest (richest) to the lowest (poorest) quintile falls from 20 to 11. These results suggest that social policies in Chile have had a significant impact in reducing income inequality, in spite of the fact that such policies are oriented towards poverty reduction rather than reduction in inequality per se. The study also presents a quantitative assessment of the "deficit" in health, education, and housing status between the years 1990 and 1998, by comparing the access to these services with various thresholds based on widely accepted standards in each area. Based on a number of indicators, the study documents the educational, health, and housing status during these two years, and presents comparative estimates of the current deficits in each of these three areas in 1990 and 1998. Overall, the study confirms the critical importance of achieving high growth and constant appraisal of the current social policies. There is no question that Chile s growth and social policies were successful in reducing the incidence and intensity of poverty. Este trabajo presenta un panorama de la situación de pobreza y distribución del ingreso en Chile durante los años 90s. Se muestra que entre 1994 y 1998 la pobreza fue mas baja respecto de períodos anteriores, sea medida por el porcentaje de pobres, el déficit de pobreza o cualquier otra medida apropiada. La evidencia muestra que la desigualdad de ingresos sigue siendo elevada para los estándares internacionales, y que la variable se ha mantenido relativamente estable durante el período bajo análisis. El trabajo también desarrolla y aplica una metodología para imputar las transferencias gubernamentales en salud, educación y vivienda en sus equivalentes monetarios para los años 1990, 1994, 1996 y 1998. El ingreso resultante muestra menor desigualdad que el ingreso monetario, con una reducción del Gini de 0.56 a 0.50 y de la razón de quintiles de 20 a 11. Estos resultados sugieren que la política social en Chile ha sido importante para reducir la desigualdad, a pesar de que se trata de políticas más orientadas a la reducción de la pobreza. El estudio también presenta una estimación del "déficit" en salud, educación y vivienda durante los años 1990 y 1998, a partir de comparar el acceso a estos servicios respecto de umbrales relevantes. Basado en un conjunto de indicadores, se evalúa la evolución de estos déficits en el período citado. En términos generales, el estudio confirma la contribución crítica que ha tenido el crecimiento económico y un conjunto de políticas sociales apropiadas para reducir la incidencia e intensidad de la pobreza en Chile.

Page Thumbnails

  • Thumbnail: Page 
[191]
    [191]
  • Thumbnail: Page 
192
    192
  • Thumbnail: Page 
193
    193
  • Thumbnail: Page 
194
    194
  • Thumbnail: Page 
195
    195
  • Thumbnail: Page 
196
    196
  • Thumbnail: Page 
197
    197
  • Thumbnail: Page 
198
    198
  • Thumbnail: Page 
199
    199
  • Thumbnail: Page 
200
    200
  • Thumbnail: Page 
201
    201
  • Thumbnail: Page 
202
    202
  • Thumbnail: Page 
203
    203
  • Thumbnail: Page 
204
    204
  • Thumbnail: Page 
205
    205
  • Thumbnail: Page 
206
    206
  • Thumbnail: Page 
207
    207
  • Thumbnail: Page 
208
    208