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Trade Liberalization and the Self-Employed in Mexico

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  • Popli, Gurleen K.

Abstract

Summary This paper examines the trend in income inequality and poverty among the self-employed workers in Mexico during 1984-2002, a period of rapid trade liberalization. In the decade following the liberalization, inequality and poverty among the self-employed increased; as the economy stabilized inequality started to go down, but poverty kept increasing. To understand the observed changes the inequality and poverty indices are decomposed into within and between group components. Rising returns to skilled labor, regional differences in impact of liberalization and sectoral shifts in employment are important factors in explaining the trends in both inequality and poverty.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 6 (June)
Pages: 803-813

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:6:p:803-813

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: income inequality; poverty; Shapley-Shorrocks decomposition; self-employed; Mexico;

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References

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  1. Koujianou Goldberg, Pinelopi & Pavcnik, Nina, 2003. "The response of the informal sector to trade liberalization," Journal of Development Economics, Elsevier, vol. 72(2), pages 463-496, December.
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  8. David G. Blanchflower, 2000. "Self-Employment in OECD Countries," NBER Working Papers 7486, National Bureau of Economic Research, Inc.
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  13. Nicita, Alessandro, 2004. "Who benefited from trade liberalization in Mexico? Measuring the effects on household welfare," Policy Research Working Paper Series 3265, The World Bank.
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  15. Moore, Robert L, 1983. "Employer Discrimination: Evidence from Self-Employed Workers," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 496-501, August.
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  17. Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
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Cited by:
  1. Ströh de Martínez, Christiane, 2011. "Finance for the poor in demand: Who uses microfinance and why?," IPE Working Papers 10/2011, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
  2. Paolo Giordano & Kun Li, 2012. "An Updated Assessment of the Trade and Poverty Nexus in Latin America," IDB Publications 79119, Inter-American Development Bank.
  3. Eduardo Michel Camacho & Willy W. Cortez, 2012. "Distribución del ingreso y bienestar social en México 1984-2008," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(2), pages 347-378.

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