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Original Articles

A Spatial Decomposition of Income Inequality in Chile

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Pages 771-789 | Received 12 Sep 2012, Accepted 24 Mar 2014, Published online: 02 Sep 2014
 

Abstract

Paredes, D., Iturra, V. and Lufin, M. A spatial decomposition of income inequality in Chile, Regional Studies. Previous literature identifies the high and persistent income inequality of Chile, but the geographic heterogeneity of the inequality is still unexplored. This lack of discussion encourages spatially blind policy that ignores the interaction between individual and spatial inequality. To evaluate its magnitude, a spatial decomposition at the regional, provincial and county levels is proposed. The decomposition indicates that between 1992 and 2009, 21% of the total inequality is attributable to geographical scale. The results show that spatial inequality is a relevant magnitude to be considered by policy-makers.

Paredes, D., Iturra, V. and Lufin, M. 智利所得不均的空间分解,区域研究。过去的文献,指认出智利高度且长期存在的所得不均问题,但却仍未探讨不均的地理异质性。此一讨论的阙如,助长了忽略个人不均和空间不均互动的空间盲政策。为了衡量此一重要性,本文提出区域、省以及郡县层级的空间分解。此一分解指出,1992年和2009年之间,总体不均的百分之二十一,可归因于地理尺度。研究结果显示,空间不均是政策制定者需考量的相关重要性。

Paredes, D., Iturra, V. et Lufin, M. Une décomposition spatiale de l'inégalité des revenus au Chili, Regional Studies. Des études antérieures identifient l'inégalité des revenus forte et persistante au Chili, mais l'hétérogénéité géographique de l'inégalité reste toujours inexplorée. Cette absence de discussion mène à une politique ‘sourde’ du point de vue spatial qui ne fait aucune attention à l'interaction entre l'individu et l'inégalité spatiale. Pour en évaluer l'importance, on propose une décomposition spatiale sur le plan régional, d'envergure provinciale et au niveau des comtés. La décomposition indique que, de 1992 à 2009, 21% de l'inégalité globale est imputable à l’échelle géographique. Les résultats indiquent que l'importance de l'inégalité spatiale mérite quelque réflexion par les décideurs.

Paredes, D., Iturra, V. und Lufin, M. Räumliche Aufschlüsselung der Einkommensungleichheit in Chile, Regional Studies. In der bisherigen Literatur wird die hohe und anhaltende Einkommensungleichheit in Chile identifiziert, doch die geografische Heterogenität dieser Ungleichheit wurde bisher noch nicht untersucht. Diese mangelnde Diskussion fördert eine räumlich blinde Politik, die die Wechselwirkungen zwischen der individuellen und der räumlichen Ungleichheit ignoriert. Zur Bewertung ihrer Größe wird eine räumliche Aufschlüsselung auf Regions-, Provinz- und Bezirksebene vorgeschlagen. Aus der Aufschlüsselung geht hervor, dass zwischen 1992 und 2009 21 % der gesamten Ungleichheit auf den geografischen Maßstab zurückzuführen ist. Die Ergebnisse zeigen, dass die räumliche Ungleichheit eine relevante Größe darstellt, die von Politikern berücksichtigt werden muss.

Paredes, D., Iturra, V. y Lufin, M. Descomposición espacial de la desigualdad de ingresos en Chile, Regional Studies. Hasta ahora se había identificado en la bibliografía la alta y persistente desigualdad de ingresos en Chile, sin embargo, todavía queda por estudiar la heterogeneidad geográfica de la desigualdad. Esta falta de debate estimula una política espacialmente corta de miras que ignora la interacción entre la desigualdad individual y espacial. Para evaluar su magnitud, proponemos una descomposición espacial de ámbito regional, provincial y comarcal. Esta descomposición indica que entre 1992 y 2009, el 21% de la desigualdad total se atribuye a escala geográfica. Los resultados indican que la desigualdad espacial representa una magnitud relevante que deberían tener en cuenta los políticos.

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Corrigendum

Notes

1. For more information, see http://www.oecd.org/.

2. It is still a preliminary rate of the Chilean government.

3. Since October 2007, Chile has been divided into 15 regions, but 13 regions in 2009 are continued to be used for comparative purposes.

4. Solimano and Torche (Citation2008) provide an excellent discussion, but the analysis is estimated only up to 2006. The present paper adds new information which includes 2009.

5. Thanks to the anonymous referee for this comment.

6. The authors recognize the sound criticism of the neoclassical perspective, especially regarding how it incorporates the role of the geographical space. However, we are not supporting the market mechanism as the only instrument in guaranteeing the reduction of spatial disparities, but rather incorporating a mechanism that is absent in the individual inequality analysis.

7. As the referee suggested, a potential explanation for spatial wage differential could be attributed to the spatial cost of living. Even though this source is recognized, the National Statistical Agency of Chile does not compute a regional housing price index. This lack of information does not permit the real wage differential to be estimated. For additional information about this problem, see Paredes (Citation2011) and Paredes and Iturra (Citation2013).

8. For example, Agostini and Brown (Citation2007) and Ramírez et al. (Citation2009) provide an excellent discussion about how to estimate inequality coefficients for intra-national units. While the relevance and importance of this research are recognized, the objective of this paper is to complement individual income inequality with a spatial component.

9. Other types of inequalities such as urban–rural, gender or industrial are not ignored. However, this paper is focused on the particular role played by the inequality attributable to geographical space.

10. It is important to recognize that the administrative division does not necessarily coincide with the functional dimension in which economic geography applies. Regrettably, even when the weakness of the administrative division is declared, Chile does not have any functional divisions of the national territory. In this sense, the results obtained in this paper could initiate a discussion within the public agenda which would include the role of geography.

11. See note 3.

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