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Rising Inequality in Mexico: Household Characteristics and Regional Effects

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Author Info
César Patricio Bouillon
Arianna Legovini
Nora Lustig

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Abstract

We use an empirical framework to identify the contributions of microeconomic factors to the sharp rise in household (per capita) income inequality in Mexico between 1984 and 1994. Results indicate that changes in returns to household characteristics, in particular changes in returns to education, are responsible for about half of the increase in the Gini coefficient. The deteriorating conditions in rural areas relative to the urban areas and of the southern region relative to other regions account for another fourth of the increase in the Gini.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 39 (2003)
Issue (Month): 4 (April)
Pages: 112-133
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Handle: RePEc:taf:jdevst:v:39:y:2003:i:4:p:112-133

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Related research
Keywords: Household Income Inequality; Mexico; Gini Coefficient; Regional Effects;

Cited by:
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  1. Lopez-Acevedo, Gladys & Salinas, Angel, 2000. "The distribution of Mexico's public spending on education," Policy Research Working Paper Series 2404, The World Bank. [Downloadable!]
  2. Monserrat Bustelo, 2004. "Caracterización de los Cambios en la Desigualdad y la Pobreza en Argentina Haciendo Uso de Técnicas de Descomposiciones Microeconometricas (1992-2001)," Working Papers 0013, CEDLAS, Universidad Nacional de La Plata. [Downloadable!]
  3. Cunningham, Wendy & Jacobsen, Joyce P., 2008. "Earnings inequality within and across gender, racial, and ethnic groups in four Latin American Countries," Policy Research Working Paper Series 4591, The World Bank. [Downloadable!]
  4. Erin Hamilton & Andrés Villarreal & Robert Hummer, 2009. "Mother’s, Household, and Community U.S. Migration Experience and Infant Mortality in Rural and Urban Mexico," Population Research and Policy Review, Springer, vol. 28(2), pages 123-142, April. [Downloadable!] (restricted)
  5. Robert M. Townsend & Kenichi Ueda, 2003. "Financial Deepening, Inequality, and Growth: A Model-Based Quantitative Evaluation," IMF Working Papers 03/193, International Monetary Fund. [Downloadable!]
  6. Lopez-Acevedo, Gladys, 2006. "Mexico : two decades of the evolution of education and inequality," Policy Research Working Paper Series 3919, The World Bank. [Downloadable!]
  7. Lopez-Acevedo, Gladys & Salinas, Angel, 2000. "How Mexico's financial crisis affected income distribution," Policy Research Working Paper Series 2406, The World Bank. [Downloadable!]
  8. Villarreal, Hector J. & Mehta, Aashish, 2005. "Inequality and Heterogeneous Returns to Education in Mexico (1992-2002)," Proceedings of the German Development Economics Conference, Kiel 2005 34, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
  9. Aashish Mehta & Hector J. Villarreal, 2005. "Inequality and Heterogeneous Returns to Education in Mexico (1992-2002)," Ibero America Institute for Econ. Research (IAI) Discussion Papers 131, Ibero-America Institute for Economic Research. [Downloadable!]
  10. Julio Huato, 2005. "Maquiladoras and Standard of Living in Mexico Before and After NAFTA," Development and Comp Systems 0508006, EconWPA. [Downloadable!]
  11. Martin Gonzalez-Rozada & Alicia Menendez, 2002. "Why have poverty and income inequality increased so much? Argentina 1991-2002," Business School Working Papers treintayuno, Universidad Torcuato Di Tella. [Downloadable!]
  12. Lopez-Acevedo, Gladys, 2001. "Evolution of earnings and rates of returns to education in Mexico," Policy Research Working Paper Series 2691, The World Bank. [Downloadable!]
  13. T. Paul Schultz, 2001. "School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program," Working Papers 834, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  14. Emanuele Baldacci & Gabriela Inchauste & Luiz de Mello, 2002. "Financial Crises, Poverty, and Income Distribution," IMF Working Papers 02/4, International Monetary Fund. [Downloadable!]
  15. Jaime Ros & Nora Claudia Lustig, 2000. "Trade and Financial Liberalization with Volatile Capital Inflows: Macroeconomic Consequences and Social Impacts in Mexico during the 1990s," SCEPA Working Papers 2000-08, Schwartz Center for Economic Policy Analysis (SCEPA), The New School. [Downloadable!]
  16. Alejandra Mizala & Pilar Romaguera, 2002. "Equity and Educational Performance," Documentos de Trabajo 136, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
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