Hostname: page-component-cd9895bd7-jn8rn Total loading time: 0 Render date: 2024-12-23T00:21:52.821Z Has data issue: false hasContentIssue false

Reconstructing labor income shares in Argentina, Brazil and Mexico, 1870-2000*

Published online by Cambridge University Press:  01 September 2010

Ewout Frankema*
Affiliation:
Department of Humanities, Utrecht University, Drift 10, 3512 BS, Utrecht, The Netherlands. e.frankema@uu.nl

Abstract

The labor income share in national income is a good indicator of the extent to which the working classes are able to reap the fruits of economic growth or, conversely, bear the burden of economic stagnation. This paper aims to reconstruct the labor income share of Argentina, Brazil and Mexico in a three-sector framework, including the rural, the urban formal and the urban informal sectors. We find that in all three countries the share of labor earnings peaked in the middle of the 20th century. Fluctuations in the Brazilian and Mexican labor income shares were large, with a sharp decline in the post-1961 and post-1976 periods, respectively. In Argentina, the labor income shares tended to be more constant at levels around 50 per cent, testifying to a more stable and egalitarian distribution of income.

Resumen

La cuota del ingreso del trabajo en la renta nacional es un buen indicador sobre el grado en el que las clases trabajadoras han sido capaces de beneficiarse de los frutos del creciminto económico o, al contrario, sufrir la carga del estancamiento. Este artículo tiene como objetivo reconstruir la cuota del ingreso del trabajo en Argentina, Brasil y México en un contexto de tres sectores, incluyendo el rural, el formal urbano y el informal urbano. Se aprecia que en los tres países la cuota del ingreso del trabajo llega a su máximo hacia mitad del siglo XX. Las fluctuaciones de este ingreso en el caso de Brasil y México fueron muy amplias, con un declive muy agudo en el periodo posterior a 1961 y 1971 respectivamente. En Argentina estas cuotas del ingreso del trabajo tendieron a ser más constantes y mantuvieron niveles cercanos al 50 por ciento, demostrando una distribución de la renta más estable e igualitaria.

Type
Articles/Artículos
Copyright
Copyright © Instituto Figuerola de Historia y Ciencias Sociales, Universidad Carlos III de Madrid 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Arroyo Abad, A. L. (2008): «Inequality in Republican Latin America: Assessing the Effects of Factor Endowments and Trade». GPIH Working Papers no. 12.Google Scholar
Astorga, P.; Berges, A. R.Fitzgerald, V. (2005): «The Standard of living in Latin America During the Twentieth Century». Economic History Review, 68 (4), pp. 765-796.CrossRefGoogle Scholar
Baer, W. (1984): «Brazil. Political Determinants of Development», in R. Wesson (ed.), Politics, Policies and Economic Development in Latin America. Stanford CA: Hoover Press, pp. 53-73.Google Scholar
Baten, J., Manzel, K. (2009): «Convergence and Divergence of Numeracy: The Development of Age Heaping in Latin America, 17th to 20th Century». University of Tuebingen Working Paper.Google Scholar
Beccaria, L. (1991): «Distribución del ingreso en la Argentina: Explorando lo sucedido desde mediados de los setenta». Desarrollo Económico, 31, pp. 319-338.CrossRefGoogle Scholar
Bértola, L. (2005): «A 50 años de la curva de Kuznets: crecimiento económico y distribución del ingreso en Uruguay y otras economías de Nuevo asentamiento desde 1870». Investigaciones de Historia Económica, 3, pp. 135-176.Google Scholar
Bértola, L., Castelnovo, C.et al. (2008): «Income distribution in the Latin American Southern Cone during the first globalization boom, ca: 1870-1920». Universidad Carlos III de Madrid Working Papers in Economic History no. 08-05.Google Scholar
Bértola, L., Castelnovo, C.et al. (2009): «Between the Colonial Heritage and the First Globalization Boom: On Income Inequality in the Southern Cone». XVth World Economic History Congress. Utrecht.CrossRefGoogle Scholar
Bértola, L.Williamson, J. G. (2006): «Globalization in Latin America before 1940», in V. Bulmer-Thomas, J. H. Coatsworth, and R. Cortés Conde (eds), The Cambridge Economic History of Latin America. Volume II: The Long Twentieth Century. Cambridge, Mass.: Cambridge University Press, pp. 11-57.Google Scholar
Bulmer-Thomas, V. (2003): The Economic History of Latin America since Independence. Cambridge, U.K.: Cambridge University Press.CrossRefGoogle Scholar
Cardoso, E.Helwege, A. (1992): Latin America’s Economy. Diversity, Trends, and Conflicts. Cambridge, Mass.: The MIT press.Google Scholar
Cortés Conde, R. (2006): «Fiscal and Monetary Regimes», in V. Bulmer-Thomas, J. H. Coatsworth, and R. Cortés Conde (eds), The Cambridge Economic History of Latin America: The Long Twentieth Century, vol. II. Cambridge, Mass.: Cambridge University Press, pp. 209-248.CrossRefGoogle Scholar
De Ferranti, D., Perry, G. E., et al. (2004): Inequality in Latin America. Breaking with History? Washington, D.C.: World Bank.CrossRefGoogle Scholar
De Janvry, A., Sadoulet, E. (2002). «Land Reforms in Latin America: Ten Lessons toward a Contemporary Agenda». Paper presented at the World Bank’s Latin American Land Policy Workshop, June 14, 2002.Google Scholar
De Vries, G., Timmer, M. P. (2007): «A Cross-country database for sectoral employment and productivity in Asia and Latin America, 1950-2005». University of Groningen GGDC-Research Memorandum GD-94.Google Scholar
ECLAC (2005): Statistical Yearbook for Latin America and the Caribbean, 2005. Santiago de Chile: ECLAC.Google Scholar
Edwards, S. (1995): Crisis and Reform in Latin America. From Despair to Hope. Washington, D.C.: World Bank, Oxford University Press.Google Scholar
Frankema, E. H. P. (2009a): «The Expansion of Mass Education in Twentieth Century Latin America: A Global Comparative Perspective». Revista de Historia Económica, 27 (3), pp. 359-395.CrossRefGoogle Scholar
Frankema, E. H. P. (2009b): Has Latin America Always Been Unequal? A comparative study of asset and income inequality in the long twentieth century. Leiden, Boston: Brill.CrossRefGoogle Scholar
Frankema, E. H. P. (2010): «The Colonial Roots of Land Inequality: Geography, Factor Endowments or Institutions?». Economic History Review, 63 (2), pp. 418-451.CrossRefGoogle Scholar
Galiani, S.Gerchunoff, P. (2003): «The Labor Market», in G. della Paolera, and A. M. Taylor (eds), A New Economic History of Argentina. Cambridge, Mass.: Cambridge University Press.Google Scholar
Gereffi, G.Evans, P. (1995): «Transnational Corporations, Dependent Development, and State Policy in the Semiperiphery: A Comparison of Brazil and Mexico», in J. L. Dietz (ed.), Latin America’s Economic Development. Confronting Crisis. Boulder, C.O.: Lynne Rienner, pp. 203-236.CrossRefGoogle Scholar
Hanson, R. D. (1971): The Politics of Mexican Development. Baltimore, M.D.: The Johns Hopkins University Press.Google Scholar
Huber, E.Safford, F. (eds) (1995): Agrarian Structure and Political Power. Landlord and Peasant in the Making of Latin America. Pittsburgh, P.A.: University of Pittsburgh Press.Google Scholar
Hussmanns, R. (2004): «Measuring the Informal Economy: From Employment in the Informal Sector to Informal Employment». ILO ILO Policy Integration Department Working Paper no. 53.Google Scholar
ILO (1993): Statistics of Employment in the Informal Sector. Report of the XVth International Conference of Labour Statisticians, 19-28 January. Geneva: ILO.Google Scholar
ILO (1997): Economically Active Population 1950-2010. Geneva: International Labour Organization.Google Scholar
ILO (2006): Key Indicators of the Labour Market 2006. Geneva: ILO.Google Scholar
ILO: Yearbook of Labour Statistics. Various issues 1936-2005. Geneva: ILO.Google Scholar
Kuznets, S. (1955): «Economic Growth and Income Inequality». The American Economic Review, 45, pp. 1-28.Google Scholar
Kuznets, S. (1966): Modern Economic Growth. Rate, Structure and Spread. New Haven, C.T.: Yale University Press.Google Scholar
Levine, R. M. (1999): The History of Brazil. New York: Palgrave Macmillan.Google Scholar
Levy, D. C.; Bruhn, K.Zebadúa, E. (2006): Mexico. The Struggle for Democratic Development. Berkeley, C.A.: Univeristy of California Press.Google Scholar
Lewis, C. M. (1986): «Industry in Latin America before 1930», in L. Bethell (ed.), The Cambridge History of Latin America, c.1870 to 1930, vol. IV. Cambridge, Mass.: Cambridge University Press, pp. 267-324.Google Scholar
Lewis, P. H. (1990): The Crisis of Argentine Capitalism. Chapel Hill, N.C.: University of North Carolina Press.Google Scholar
Lewis, W. A. (1954): «Economic Development with Unlimited Supplies of labor». The Manchester School of Economic and Social Studies, 22, pp. 139-191.CrossRefGoogle Scholar
Lindert, P. H. (2000): «Three Centuries of Inequality in Britain and America», in A. B. Atkinson, and F. Bourguignon (eds), Handbook of Income Distribution, vol. 1. Amsterdam: Elsevier North-Holland, pp. 167-216.CrossRefGoogle Scholar
Maddison, A. (2003): The World Economy: Historical Statistics. Paris: OECD.CrossRefGoogle Scholar
Mariscal, E.Sokoloff, K. L. (2000): «Schooling, Suffrage, and Inequality in the Americas, 1800-1945», in S. Haber (ed.), Political Institutions and Economic Growth in Latin America. Essays in Policy, History, and Political Economy. Stanford. C.A.: Hoover Insitution Press, Stanford University, pp. 159-217.Google Scholar
Milanovic, B.; Lindert, P. H., Williamson, J. G. (2008): «Measuring Ancient Inequality». NBER Working Paper no. 13550.Google Scholar
Morley, S. (2001): The Income Distribution Problem in Latin America and the Caribbean. Santiago de Chile, UN: ECLAC.CrossRefGoogle Scholar
Morrisson, C. (2000): «Historical Perspectives on Income Distribution: The Case of Europe», in A. B. Atkinson, and F. Bourguignon (eds), Handbook of Income Distribution. Amsterdam: Elsevier North-Holland, pp. 217-260.CrossRefGoogle Scholar
Mulder, N. (1999): The Economic Performance of the Service Sector in Brazil, Mexico and the USA. A Comparative Historical Perspective. Groningen: GGDC, Univeristy of Groningen.Google Scholar
Navarette, I. M. D. (1960): La distribución del ingreso y el desarollo económico de Mexico. Mexico, D.F.: Instituto de Investigaciones Económicas, Escuela Nacional de Economia.Google Scholar
O’Rourke, K.Williamson, J. G. (1999): Globalization and History. The Evolution of a Nineteenth-Century Atlantic Economy. Cambridge, Mass.: The MIT Press.CrossRefGoogle Scholar
Prados de la Escosura, L. (2005): «Growth, Inequality and Poverty in Latin America: Historical Evidence, Controlled Conjectures». Universidad Carlos III de Madrid Working Papers in Economic History no. 05-41.Google Scholar
PREALC (1982): Mercado de Trabajo en Cifras.1950-1980. Santiago de Chile: ECLAC: Programa Regional de Empleo para América Latina y el Caribe.Google Scholar
Rosado, D. L.Noyola, J. F. (1951): «Los Salarios reales en Mexico, 1939-1950». El Trimestre Económico, 18, pp. 201-209.Google Scholar
Soltow, L.van Zanden, J. L. (1998): Income and Wealth Inequality in the Netherlands, 16th-20th Century. Amsterdam: Het Spinhuis.Google Scholar
Sturmthal, A. (1955): «Economic Development, Income Distribution, and Capital Formation in Mexico». Journal of Political Economy, 63 (3), pp. 183-201.CrossRefGoogle Scholar
TCB and GGDC (January 2009a): 10-sector Database, The Conference Board and the Groningen Growth and Development Centre, available at www.ggdc.net.Google Scholar
TCB and GGDC (January 2009b): Total Economy Database (TED), The Conference Board and the Groningen Growth and Development Centre, available at www.ggdc.net.Google Scholar
Thorp, R. (1998): Progress, Poverty and Exclusion. An Economic History of Latin America in the Twentieth Century. New York: Inter-American Development Bank, The Johns Hopkins Univeristy Press.CrossRefGoogle Scholar
UN (2008): World Population Prospects: The 2008 Revised Population Database, available at www.esa.un.org/unpp/.Google Scholar
UNU-WIDER (2008): World Income Distribution Database, Version 2.0c, available at http://www.wider.unu.edu/research/Database/en_GB/database/.Google Scholar
Wegenast, T. (2009): «Of Latifundia and Coronéis: Agrarian Structure and Educational Inequalities in Brazil». Working Paper Prepared for Presentation at the Mini-Conference «A Comparative Approach to Inequality and Development: Latin America and Europe» May 8-9.Google Scholar
Williamson, J. G. (1998): «Real Wages and Relative Factor Prices in the Third World 1820-1940: Latin America». Harvard Institute of Economic Research Discussion Paper no. 1853.Google Scholar
Williamson, J. G. (1999): «Real Wages, Inequality and Globalization in Latin America before 1940». Revista de Historia Económica, 17 (Número especial), pp. 101-142.CrossRefGoogle Scholar
Williamson, J. G. (2002): «Land, Labor and Globalization in the Third World 1870-1940». Journal of Economic History, 62 (1), pp. 55-85.Google Scholar
Worldbank (2006): Equity and Development. World Development Report 2006. Washington, D.C.: World Bank.Google Scholar
Worldbank (2008): World Development Indicators 2008. Washington, D.C.: World Bank.Google Scholar