Income Inequality in Paraguay Hinders Growth and Income Mobility.
The study looked at how income and education inequality in Paraguay from 1992 to 2002 affected economic growth. They found that income inequality has a negative impact on growth, while human capital inequality has some positive effects but not as strong. The results show that lower-income groups grew faster initially, indicating a trend towards more equal incomes over time. The researchers used small area welfare estimates to analyze the data and found that income inequality is more influential than education inequality in shaping economic growth.