Latin America has often been depicted as one of the most unequal regions in the world. However,
after the rising of inequality, the figure decline dramatically starting from the year 2000. In this setting,
Bolivia has been one of the poorest performers on income distribution efforts, lately, this situation has been
improving. The author investigates the dynamics of this change through an analysis of household level
surveys for 4 different years (2003/04, 2005, 2008 and 2009). The research applies a method of inequality
decomposition– as developed by (Fields, 2003)-, this technique consists on regressing the expenditure of
households against a vector of explanatory variables. The results suggest that education (more than other
variables) has contributed on the reduction of inequality in Bolivia. Moreover, the sources of inequality are
mainly attributed to the differences on human capital accumulation more than any other variables, such as the
gender of the household head or the ethnical origin of the household. The results are in line with similar work
made by other authors on the same issue (Gray-Molina, et al., 2001; Gray Molina &Yañez, 2009