Combating Inequality: Is There a “Scandinavian Way” to Reduce Inequality in Latin America?

Abstract

Latin America experienced a process of reduction in income inequality between 2002 and 2014, a period in which most other countries experienced an increase. However, since then inequality has started to increase again. The Scandinavian countries are often regarded as models of low inequality, in spite of recent increases. If compared to Latin America, what stands out about Scandinavia is that one has managed to sustain processes of inequality reduction over several decades in spite of political shifts and changing economic conditions. This paper seeks to identify aspects of the interaction between structural factors, policy changes, and strengthening or weakening of change agents, that have led to sustained inequality reduction in the Scandinavian countries (with a particular emphasis on Norway), and discuss their relevance for Latin America.

Keywords

• Inequality
• social movements
• social policy
• labor market
• institutions
• Latin America
• Scandinavia