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Top Incomes in Chile. A Historical Perspective of Income Inequality (1964-2015)
  • ricardomayerb
ricardomayerb

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Abstract

This paper presents a historical series of income-concentration in Chilean top shares over near half a century using tax statistics and national accounts data. We distinguish between unadjusted series and adjusted series, which include the imputation of undistributed profits. Income concentration remains relatively high through the whole period. Unadjusted estimates (1964-2015) present an inverted-U shape that reaches a peak during dictatorship-years (1980s). The adjusted series (1990-2015) increases the level of concentration and changes the trend showing an increase around the year 2000. This latter finding contradicts the evidence based on survey-data, upon which inequality falls during the last 25 years. Finally, Chile ranks as one of the most concentrated countries among both OECD and Latin American countries over the whole time of study.