Labor Income Inequality Shrank in Uruguay between 2007 and 2014 Despite an Increase in Productive Heterogeneity

Inequality in labor income fell significantly between 2007 and 2014 in Uruguay despite the fact that inequality in productivity continued to rise, probably facilitated by a series of labor and tax policies implemented during that period, according to a new book published by the Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labour Organization (ILO). The book entitled Toward Inclusive Development: The Case of Uruguay (only available in Spanish) analyzes the country’s evolution from 2001 to 2014 in terms of economic growth, labor market dynamics and social…