Income Distribution and Income Sources in Uruguay

Journal of Applied Economics, Vol 9, No. 1, May 2006

Posted: 14 Jun 2006 Last revised: 6 Oct 2010

See all articles by Carlos Gradín

Carlos Gradín

University of Vigo

Maximo Rossi

Departamento de Economía, dECON; Universidad de la Republica - Department of Economics

Date Written: October 5, 2010

Abstract

This paper is concerned with changes in the distribution of income sources in Uruguay after the late eighties. An apparent stability in the distribution of total incomes is hiding deep transformations affecting the generation of that income. The distribution across all income earners at the end of the eighties exhibited two well-distinguished poles, each associated with one of the main income sources: pension benefits and wages. This bimodality diminished during the nineties due to the reduction in polarization by income sources. In the same period we find that in the case of labor earnings there was a net transfer of population mass from the middle of the distribution to both extremes, which results in an increasing polarization within this income source. This phenomenon resembles the Anglo-Saxon experience of the shrinking middle class.

Keywords: income sources, inequality, labor market, pension benefits, polarization

JEL Classification: D33, D31, I38

Suggested Citation

Gradín Lago, Carlos Manuel and Rossi, Maximo, Income Distribution and Income Sources in Uruguay (October 5, 2010). Journal of Applied Economics, Vol 9, No. 1, May 2006, Available at SSRN: https://ssrn.com/abstract=908663

Carlos Manuel Gradín Lago (Contact Author)

University of Vigo ( email )

As Lagoas Marcosende s/n
Departmento de Economia Aplicada
36200 Vigo
Spain
+34 986 812514 (Phone)
+34 986 812401 (Fax)

Maximo Rossi

Departamento de Economía, dECON ( email )

Facultad de Ciencias Sociales
Jose E. Rodo 1854
Montevideo 11200, 11200
Uruguay
59824106449 (Phone)
59824106450 (Fax)

HOME PAGE: http://Http://www.decon.edu.uy/~mito

Universidad de la Republica - Department of Economics ( email )

Constituyente 1502 Piso 6º
Montevideo, 11200
Uruguay
+598 2 4106449 (Phone)
+598 2 4106450 (Fax)

HOME PAGE: http://decon.edu.uy/~mito/pagina

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