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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Main Authors: Buket Savranlar, Ebru Topcu
Format: Article
Language:English
Published: Istanbul University Press 2023-06-01
Series:İstanbul İktisat Dergisi
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/E57C8DC87A4040719AE1388B16F7AD02
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author Buket Savranlar
Ebru Topcu
author_facet Buket Savranlar
Ebru Topcu
author_sort Buket Savranlar
collection DOAJ
description 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.
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spelling doaj-art-95f37374f6394b6ca08ec4080b62a07e2025-08-20T03:09:31ZengIstanbul University Pressİstanbul İktisat Dergisi2602-39542023-06-0173126128010.26650/ISTJECON2022-1195063123456Urbanization and Urban-Rural Income Inequality in Latin AmericaBuket Savranlar0Ebru Topcu1https://orcid.org/0000-0003-3572-7552Nişantaşı Üniversitesi, Istanbul, TurkiyeNevşehir Hacı Bektaş Veli Üniversitesi, Nevsehir, TurkiyeAfter 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.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/E57C8DC87A4040719AE1388B16F7AD02urbanizationincome inequalitypanel quantile regressionpanel causality
spellingShingle Buket Savranlar
Ebru Topcu
Urbanization and Urban-Rural Income Inequality in Latin America
İstanbul İktisat Dergisi
urbanization
income inequality
panel quantile regression
panel causality
title Urbanization and Urban-Rural Income Inequality in Latin America
title_full Urbanization and Urban-Rural Income Inequality in Latin America
title_fullStr Urbanization and Urban-Rural Income Inequality in Latin America
title_full_unstemmed Urbanization and Urban-Rural Income Inequality in Latin America
title_short Urbanization and Urban-Rural Income Inequality in Latin America
title_sort urbanization and urban rural income inequality in latin america
topic urbanization
income inequality
panel quantile regression
panel causality
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/E57C8DC87A4040719AE1388B16F7AD02
work_keys_str_mv AT buketsavranlar urbanizationandurbanruralincomeinequalityinlatinamerica
AT ebrutopcu urbanizationandurbanruralincomeinequalityinlatinamerica