Declines in fertility and consequently in household size are among the main
demographic changes that took place in many Latin American countries during the last decades.
This demographic alteration may have had an impact on income distribution in case the patterns
of decline were not similar between rich and poor households. In order to understand the driving
forces of inequality changes in Uruguay, we consider the role of differential changes in
reproductive behaviour and household formation on inequality and also on poverty, for two time
periods (1996-2007 and 2007-2013).