The Rise and Fall of Income Inequality in Mexico: 1989-2010
AbstractInequality in Mexico rose between 1989 and 1994 and declined between 1994 and 2010. We examine the role of market forces (demand and supply of labour by skill), institutional factors (minimum wages and unionization rate), and public policy (cash transfers) in explaining changes in inequality. We apply the ‘re-centered influence function’ method to decompose changes in hourly wages into characteristics and returns. The main driver is changes in returns. Returns rose (1989-1994) due to institutional factors and labor demand. Returns declined (1994-2006) due to changes in supply and --to a lesser extent--in demand; institutional factors were not relevant. Government transfers contributed to the decline in inequality, especially after 2000.
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Bibliographic InfoPaper provided by El Colegio de México, Centro de Estudios Económicos in its series Serie documentos de trabajo del Centro de Estudios Económicos with number 2012-04.
Date of creation: Jan 2012
Date of revision:
inequality; wages; disposable income; labor markets; Mexico;
Other versions of this item:
- Raymundo Campos & Gerado Esquivel & Nora Lustig, 2012. "The Rise and Fall of Income Inequality in Mexico, 1989-2010," Working Papers 1201, Tulane University, Department of Economics.
- Campos, Raymundo & Esquivel, Gerardo & Lustig, Nora, 2012. "The Rise and Fall of Income Inequality in Mexico, 1989.2010," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Raymundo Campos & Gerardo Esquivel & Nora Lustig, 2012. "The Rise and Fall of Income Inequality in Mexico, 1989–2010," Working Papers 267, ECINEQ, Society for the Study of Economic Inequality.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D60 - Microeconomics - - Welfare Economics - - - General
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-08 (All new papers)
- NEP-DEV-2012-03-08 (Development)
- NEP-LAB-2012-03-08 (Labour Economics)
- NEP-LTV-2012-03-08 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The Rise and Fall of Income Inequality in Mexico: 1989-2010
by Maximo Rossi in Wikiprogress América Latina on 2012-03-12 13:30:00
- The Rise and Fall of Income Inequality in Mexico, 1989-2010
by maximorossi in NEP-LTV blog on 2012-03-23 23:05:59
- Nora Lustig & Luis F. Lopez-Calva & Eduardo Ortiz-Juarez, 2012.
"Declining Inequality in Latin America in the 2000s: the Cases of Argentina, Brazil, and Mexico,"
266, ECINEQ, Society for the Study of Economic Inequality.
- Nora Lustig, Luis F. Lopez-Calva, Eduardo Ortiz-Juarez, 2012. "Declining Inequality in Latin America in the 2000s: The Cases of Argentina, Brazil, and Mexico," Working Papers 307, Center for Global Development.
- Lustig, Nora & Lopez-Calva, Luis F. & Ortiz-Juarez, Eduardo, 2012. "Declining inequality in Latin America in the 2000s : the cases of Argentina, Brazil, and Mexico," Policy Research Working Paper Series 6248, The World Bank.
- Nora Lustig & Luis F. Lopez-Calva & Eduardo Ortiz-Juarez, 2012. "Declining Inequality in Latin America in the 2000s: The Cases of Argentina, Brazil, and Mexico," Working Papers 1218, Tulane University, Department of Economics.
- Nora Lustig in Wikipedia (English)
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