Sebastian Edwards, 30 November 2019

In a few decades, Chile experienced dramatic economic growth and the fastest reduction of inequality in the region. Yet, many Chilean citizens feel that inequality has greatly increased. Such feelings of 'malestar' triggered the violent social unrest of October 2019. This paper explains this seeming paradox by differentiating ‘vertical’ (income) inequality from ‘horizontal’ (social) inequality. It argues that the neoliberalism that created Chile’s economic growth is no longer effective and that Chile may be headed towards adopting a welfare state model.

Emilia Simeonova, Randall Akee, John Holbein, William E. Copeland, E. Jane Costello, 15 July 2018

Political scientists have shown conclusively, at least in the US, that richer people vote more, which has troubling implications. Using data from a government cash transfer programme, this column shows that children who grew up in households in the bottom half of the income distribution that received extra income were more likely to vote as adults compared to their counterparts who did not receive the transfers. The results suggest that efforts to reduce income inequality may have the unexpected side effect of reducing gaps in civic participation.

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