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Tracing out the effects of demographic changes on the income distribution

The case of Greater Buenos Aires, 1980–1998

Abstract

During the 1980s and 1990s fertility decisions varied significantly and not uniformly along the income distribution in Argentina. In this paper we study the effects of these demographic changes on income poverty and inequality by applying microeconometric decomposition techniques. In particular, we simulate the equivalized household income distribution that would emerge if individuals observed in a given base year had taken fertility decisions as they did in another different year. The results suggest that these demographic factors have contributed considerably to the changes in poverty and inequality experienced by Argentina since the 1980s.

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Abbreviations

EPH:

Permanent Household Survey (Encuesta Permanente de Hogares)

GBA:

Greater Buenos Aires area

GMS:

Gasparini, Marchionni, and Sosa Escudero (2004)

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Correspondence to Mariana Marchionni.

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Marchionni, M., Gasparini, L. Tracing out the effects of demographic changes on the income distribution. J Econ Inequal 5, 97–114 (2007). https://doi.org/10.1007/s10888-006-9033-9

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Key words

  • Argentina
  • decompositions
  • demography
  • fertility
  • Greater Buenos Aires
  • income distribution
  • inequality
  • microsimulations
  • poverty