Therefore, when keeping constant the inequality in access to employment, the pattern of the rise and fall of income inequality becomes clearer.
Table 3 suggests that the labor market has been the main force behind the rise and fall of income inequality during the last 20 years.
Our paper provides a more complete picture of the forces driving both the rise and fall of income inequality in Chile, through the use of simple decompositions based on the 80/20 ratio.
In this paper, we implement simple decompositions based on the 80/20 ratio to dissect, step by step and within a unified framework, the forces driving the rise and fall of income inequality in Chile.
Decomposing changes in inequality into a demographic factor (changes in the fraction of potential income earners in each quintile) and changes in the per capita income received by potential income earners, we find that the latter factor is the most important for understanding the rise and fall of income inequality in Chile.
The supply and demand elements discussed above, together with the empirical evidence throughout this paper, suggest that it is a race between the demand for and the supply of educated workers in the labor market that is, in the end, behind the rise and fall of wage inequality.
We show that both observable prices and quantities are important forces behind the rise and fall of hourly wage inequality.
The levels of inequality fell significantly over time between participants and between ineligible practices, while the level of inequality increased between non-participants.
Assessing and addressing the burdens of inequality, which fall most heavily on the poor and near poor, can only help to improve the health of inner city residents.
But it was hard to tell a complete story about how the rise and fall of unions affected economic inequality because the data is confined to a time during which unions were already in decline.
