Income Inequality, Poverty and Economic Growth in Chile: The Years of the Coalition of Parties for Democracy

Abstract

The aim of this article is to provide insight on the relationship between income inequality, poverty, and economic growth for Chile during the administrations of the Coalition of Parties for Democracy (CPD) from 1989 to 2010. This study described the evolution of the Chilean economy and relates its behavior to the political transition experienced by the country. We build a model to analyze whether there is political cooperation in this period and why. Last, we observe that for Chile, economic growth alone is not enough to alleviate inequality problems, but it plays a major role in reducing poverty.