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dc.titleThe Interaction of Economic and Political Inequality in Latin America
dc.contributor.authorFergusson, Leopoldo
dc.contributor.authorRobinson, James
dc.contributor.authorTorres, Santiago
dc.contributor.orgunitVice Presidency for Sectors and Knowledge
dc.coverageColombia
dc.date.available2024-02-07T00:02:00
dc.date.issue2024-02-07T00:02:00
dc.description.abstractWe investigate how economic inequality can persist in Latin America in the context of radical falls in political inequality in the last decades. Using data from Colombia, we focus on a critical facet of democratization - the entry of new politicians. We show that initial levels of inequality play a significant role in determining the impact of political entry on local institutions, policy, and development outcomes, which can impact future inequality. A vicious circle emerges whereby policies that reduce inequality are less likely to be adopted and implemented in places with relatively high inequality. We present evidence that this is caused both by the capture of new politicians and barriers to institution and state capacity building, and also by the fact that politicians committed to redistribution are less likely to win in relatively unequal places. Our results, therefore, help to reconcile the persistence of economic inequality with the new political context.
dc.format.extent50
dc.identifier.doihttp://dx.doi.org/10.18235/0005546
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Interaction-of-Economic-and-Political-Inequality-in-Latin-America.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectEquality
dc.subjectMunicipal Government
dc.subjectPublic Policy
dc.subjectEconomy
dc.subjectElections
dc.subjectDemocracy
dc.subjectEquality Dynamic
dc.subjectEducational Institution
dc.subject.jelcodeD72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
dc.subject.jelcodeD78 - Positive Analysis of Policy Formulation and Implementation
dc.subject.jelcodeH5 - National Government Expenditures and Related Policies
dc.subject.jelcodeH4 - Publicly Provided Goods
dc.subject.jelcodeP0 - Economic Systems: General
dc.subject.keywordspolitical entry;public policy;Development
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01576
idb.operationRG-T3609
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