Two experts from the Development Bank of Latin America and the Caribbean (CAF) explained that, even though almost all Latin American countries present the same problems and income inequality, and in the Dominican Republic it is very similar to the behavior of the region, this has continued with a downward trend in this country.
Dolores de la Mata, CAF’s chief economist, and Ernesto Schardgrodsky, CAF’s director of socioeconomic research, spoke to Listín Diario at the end of the presentation of the Inherited Inequalities Economy and Development Report (RED), last Friday in Congress National.
The study of inequality presents dynamic analyzes and deeper roots that are reproduced from one generation to another, from parents to children, where well-being is highly conditioned by family origin,
They are channels that make these results perpetuate according to the socioeconomic origin of the family members, explained CAF’s chief economist, Dolores de la Mata, regarding the results of the report. She explained, however, that in addition to the causes of inequalities, the report proposes public policies that will allow solving these obstacles, especially those related to closing gaps in the formation of human capital.
He indicated that the least advantaged families have restrictions to invest in the human capital of their children, including money, finance, and training, among others, in these countries; and educational policies are very different, particularly in secondary and university education and quality issues.
Other gaps that must be closed are with respect to job opportunities, such as the fact that intermediaries are given by recommendations from the families themselves.
In addition, savings policies, which raise taxation, financial inclusion, access to credit and home ownership.
In the Dominican Republic, he said, the issues are very similar to those in the region, with a certain downward trend in terms of inequality and in terms of wealth accumulation, which are also very common.
Ernesto Schardgrodsky, director of socioeconomic research at CAF, said that this report is published every year and that the following reports will refer to climate change, in 2024, and, later, the topic will be about the energy transition, in 2025.
He explained that the report also analyzes the two concepts of absolute mobility and relative mobility, and especially their difference, and how the disadvantaged can overcome themselves thanks to their own efforts.
. The high inequality in the region has very deep roots, which have transformed it into a phenomenon inherited from generation to generation.
. In the Dominican Republic, among those born in 1980, the chances of completing higher education around the age of 24-25 was almost 50% for the children of parents with university degrees; however, only 13% for children of non-university parents”.
. The percentage of people born in the 1980s who managed to surpass the educational level of their parents is only 5 out of 10, placing the Dominican Republic below the average for the region.
. Life opportunities are marked by family socioeconomic origin, and this conditions access to good jobs, education, savings and wealth generation.
. In the Dominican Republic, the chances of having a highly complex occupation, with better wages on average, is three times higher for children of parents who had occupations with these same characteristics. Although these gaps are very wide in the Dominican Republic, they are somewhat lower than in the rest of the region.
The Minister of Finance, Jochi Vicente, also had a speech at the activity where the CAF report was presented.
The Minister of Finance said that two decades ago income inequality in the country was similar to the average for Latin America and the Caribbean, but “since the beginning of the year 2000, the country managed to sustain a reduction in inequality, unlike what happened in the rest of the region”.
According to him, the report reveals multiple factors that cause inequality to be reproduced from generation to generation.
In the LAC region, says the Report on Economy and Development (RED), there is still high inequality and a strong persistence over time in who are the most and least wealthy or advantaged individuals and families
In the report, original evidence is provided that indicates that in the region intergenerational ties could go beyond the two consecutive generations that settle for parents and children and extend to more distant ancestors”.