Perceptions of Distributive Justice in Latin America During a Period of Falling Inequality

49 Pages Posted: 13 Jun 2017

See all articles by Germán Reyes

Germán Reyes

Cornell University, Department of Economics, Students

Leonardo Gasparini

Universidad Nacional de La Plata - Centro de Estudios Distributivos

Date Written: May 23, 2017

Abstract

This paper explores perceptions of distributive justice in Latin America during the 2000s and their relationship with income inequality. In line with the fall in income inequality in the region, the paper documents a widespread, although modest, decrease in the share of the population that believes income distribution is unfair. The fall in the perception of unfairness holds across very heterogeneous groups of the population. Moreover, perceptions evolved in the same direction as income inequality for 17 of the 18 countries for which microdata are available. The analysis reveals that unfairness perceptions are more correlated with relative measures of income inequality than absolute ones, and that individual characteristics are correlated with distributive perceptions. On average, individuals who are older, more educated, unemployed, and left-wing tend to perceive income distribution as more unfair. The paper shows that the decrease in unfairness perceptions during the past decade was due to changes in inequality, rather than to composition effects. Finally, the paper shows that individuals who perceive income distribution as very unfair are more prone to mobilize and protest.

Suggested Citation

Reyes, Germán and Gasparini, Leonardo, Perceptions of Distributive Justice in Latin America During a Period of Falling Inequality (May 23, 2017). World Bank Policy Research Working Paper No. 8072, Available at SSRN: https://ssrn.com/abstract=2985497

Germán Reyes (Contact Author)

Cornell University, Department of Economics, Students ( email )

Ithaca, NY
United States

Leonardo Gasparini

Universidad Nacional de La Plata - Centro de Estudios Distributivos ( email )

Calle 6 entre 47 y 48, 5to. piso
oficina 516
La Plata, Provincia de Buenos Aires 1900
Argentina

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