The Interaction of Economic and Political Inequality in Latin America

This study investigates the persistence of economic inequality in Latin America despite significant reductions in political inequality, focusing on Colombia.

• Using Colombian data, the paper examines how the entry of new politicians affects local institutions, policy-making, and development outcomes in the context of high initial economic inequality.

 

• The research finds that policies that could reduce inequality are less likely to be adopted in areas with high inequality, suggesting a vicious circle perpetuating economic disparities

 

• The paper contributes to understanding the complex relationship between democratization and economic inequality, highlighting the challenges of achieving equitable development in contexts with entrenched disparities.