Laura Spagnolo, Álvaro Hofflinger, y Viviana Salinas
Abstract
This paper explores the evolution of pay inequality in Chile between 1990 and 2006, disaggregated by economic sectors, occupational groups and regions. We use the between-groups component of Theil’s T Statistic to obtain decompositions along these lines that are not available in previous studies of economic inequality in Chile. Betweensectors pay inequality increased from 1990 to 1996, after which it decreased, returning to 1990 levels by 2006. This rise and fall is explained primarily by changes in the relative position of the financial sector. Pay inequality between occupational groups did not change significantly during the period of study. Finally, inequality decomposed by region varies mainly with the relative position of Santiago, the richest and largest economic region.