Urbanization and Urban-Rural Income Inequality in Latin America

Authors : Buket ALTINÖZ, Ebru TOPCU

Pages : 261-279

Doi:10.26650/ISTJECON2022-1195063

View : 76 | Download : 59

Publication Date : 2023-06-26

Article Type : Research Paper

Abstract :After the pioneering work by Kuznets insert ignore into journalissuearticles values(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.
Keywords : Kentleşme, Gelir eşitsizliği, Panel kantil regresyon, Panel nedensellik