Urbanization and Urban-Rural Income Inequality in Latin America

After the pioneering work by Kuznets (1955), the relationship between urbanization and income inequality is among the topics frequently examined in the literature. However, the number of attempts focusing on this issue in the context of rural and urban income inequality is quite limited. Therefore,...

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Bibliographic Details
Main Authors: Buket Savranlar, Ebru Topcu
Format: Article
Language:English
Published: Istanbul University Press 2023-06-01
Series:İstanbul İktisat Dergisi
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Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/E57C8DC87A4040719AE1388B16F7AD02
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Summary:After the pioneering work by Kuznets (1955), the relationship between urbanization and income inequality is among the topics frequently examined in the literature. However, the number of attempts focusing on this issue in the context of rural and urban income inequality is quite limited. Therefore, the aim of this study is to examine the relationship between urbanization and urban-rural income inequality in Latin America over the period 2000-2018. Panel quantile regression results reveal that urbanization reduces both rural and urban income inequality in all quantiles. In the Latin American context, policies that support urbanization should be implemented to reduce both rural and urban income inequality. Furthermore, causality results present evidence of a bidirectional causality between urbanization and both rural and urban income inequality.
ISSN:2602-3954