Inequalities in Uruguay

Economic growth and recent reforms have reduced poverty and inequality in Uruguay, overcoming the effects of recent economic crises. Despite these improvements, inequalities remain high in several areas. Ex-ante income inequality, one of the lowest in Latin America, is persistent and calls for more effective targeting of policies towards disadvantaged groups. Overall, education quality and access have underperformed in recent years. Disparity in access to and quality of education is a fundamental challenge, particularly in secondary education. Labour markets have performed well, however unemployment remains a problem among youth. Wage differentials by educational attainment have tumbled, due to a re-composition of household incomes. In terms of expenditure, the rise in per capita income and the growing middle class will lead to greater demand for social transfers and higher medical expenses.