The Unequal Distribution of Inequality. Subnational Politics and Income Distribution in the Argentine Provinces, 2003-2011

Abstract

Despite massive income redistributive policies in recent years, inequality across Latin America is still very high. One of the possible explanations for the resilience of inequality can be found at the subnational level. Pockets of very high inequality persist at this level of government, even when national governments implement large scale redistributive policies. This paper investigates which factors at this level of government may help explaining differences in income inequality across provinces in Argentina. It also intends to contribute to understand the limits imposed to national-led inequality reduction policies. After describing the cases using original panel data on income inequality, the paper identifies structural and political factors systematically related to the levels of inequality in the Argentine provinces.