Income is one major factor in inequality. Another is education. People in the top 10 percent have about 12 years of schooling, putting them at a greater advantage over the bottom 30 percent, where people typically go no further than the fourth or fifth grade. A third key factor is the number of children per household. Those in the top 10 percent have fewer than two children, while those in the bottom 30 percent have twice that.
Development really has five dimensions.
The first is that as development proceeds, returns to capital decline. This is because capital becomes more abundant overall, while its share as a part of national income drops. At the same time, the share of income paid to skilled and unskilled labor increases. Latin America is now in the midst of this shift in income, from capital to labor, which improves the prospects for greater equality. The second dimension is demography.