Natural disasters and inequality: evidence in Latin America and the Caribbean
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Abstract
This research paper explores the relationship between natural disasters and income inequality in Latin America and the Caribbean based on a panel data model covering 14 countries during the period 2000-2017. The econometric study revealed that natural disasters worsen income inequality in the region. The results are significant in the two specifications of the model that is, using the Gini coefficient or the income of the first quintile of the population to measure the level of inequalities. In addition, it is observed that the negative effect of natural disasters on the level of inequality is maintained in the medium term. hen, hypotheses are issued on the significant medium-term impact of natural disasters based on the existing works in the recent literature. This work constitutes an important contribution for the design of public policies to reduce inequality in the countries of the region. This result is also robust to changes in the methodology and in the variables used in the model.
DOI: https://doi.org/10.31164/bcoyu.20.2019.684
URL: http://revistas.uta.edu.ec/erevista/index.php/bcoyu/article/view/684
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