What happens along the distribution curve in a capitalist economy and a ‘socialist 21st century’ economy?
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Keywords

inequality
income
distribution
Ecuador
United States

How to Cite

Sarango Rodríguez, K. ., Songor Jaramillo , X. ., & García Macías, P. . (2019). What happens along the distribution curve in a capitalist economy and a ‘socialist 21st century’ economy?. Revista nuestrAmérica, 7(13). Retrieved from https://nuestramerica.cl/ojs/index.php/nuestramerica/article/view/349

Abstract

This research examine the dynamics of labor income inequality within two territories with structurally different economic and social characteristics: Ecuador and the United States. We consider as measures of inequality the Gini coefficient and the Palma index, the measurements selected presents a view of inequality from a perspective of the variations of the midpoint of distribution (Gini) and the changes of poles of the same (Palma). After estimations, we identified a decreasing trend of inequality in Ecuador, and in United States an upward trend in income disparities. Among the factors that could explain this trend in Ecuador are the dependence of this economy on the commodities prices, the redistributive policies promoted by a leftist government -increase in public spending on education, health and social welfare- and increase of public employment. In contrast, in US we consider as determinants of increasing inequality: unions in decline, deindustrialization and delocalization, neoliberalism, technological change, education and financialization.

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Copyright (c) 2019 Katherine Sarango Rodríguez; Ximena Songor Jaramillo; Pascual García Macías

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