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¿Desaparece la clase media en México?: Una aplicación de la polarización por subgrupos entre 1984 y 2000
[Is the middle class vanishing in Mexico?: An application of polarization by subgroups between 1984 and 2000]

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  • Huesca, Luis

Abstract

This paper empirically applies the statistical approaches to the phenomenon of polarization generated by Esteban, et al. (1999) and Gradín (2000) in order to quantify the evolution of the middle class in Mexico and the role of various household attributes in the formation of groups during 1984-2000. It is assumed that the formation of extreme groups and the clustering process in every society is determined not only by equivalent income, but also by socioeconomic characteristics of the household. Micro-data of the National Survey of Household Income and Expenditure (ENIGH) is used, so that household disposable equivalent income is related to the attributes of the household head. Once the social groups are quantified, an ordered probit model is settled out so influences of characteristics are attached to them and respective probabilities and marginal effects are obtained. Findings reveal that both a huge gap between poor and rich incomes and the effect that education induces to separate the sub-populations groups, lead to increases in polarization engendering a weaker middle class in the distribution. It is also found that a higher effort is required in order to improve household conditions within the Mexican society between 1984 and 2000.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14390.

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Date of creation: Feb 2004
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Handle: RePEc:pra:mprapa:14390

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Related research

Keywords: Income distribution; Polarization; Middle class;

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  1. Zhang, Siao-Bo & Kanbur, Ravi, 1999. "What Difference Do Polarization Measures Make? An Application To China," Working Papers, Cornell University, Department of Applied Economics and Management 7224, Cornell University, Department of Applied Economics and Management.
  2. Chakravarty, Satya R & Majumder, Amita, 2001. "Inequality, Polarisation and Welfare: Theory and Applications," Australian Economic Papers, Wiley Blackwell, Wiley Blackwell, vol. 40(1), pages 1-13, March.
  3. Wolfson, Michael C, 1997. "Divergent Inequalities: Theory and Empirical Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(4), pages 401-21, December.
  4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, Elsevier, vol. 2(3), pages 244-263, September.
  5. Joan-Maria Esteban & Debraj Ray, 1991. "On the Measurement of Polarization," Boston University - Institute for Economic Development, Boston University, Institute for Economic Development 18, Boston University, Institute for Economic Development.
  6. Duclos, Jean-Yves & Mercader-Prats, Magda, 1999. "Household Needs and Poverty: With Application to Spain and the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(1), pages 77-98, March.
  7. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, American Economic Association, vol. 84(2), pages 353-58, May.
  8. Jenkins, Stephen P, 1996. "Recent Trends in the UK Income Distribution: What Happened and Why?," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 12(1), pages 29-46, Spring.
  9. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, Econometric Society, vol. 48(3), pages 613-25, April.
  10. Wang, You-Qiang & Tsui, Kai-Yuen, 2000. " Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-63.
  11. Cowell, Frank A., 1989. "Sampling variance and decomposable inequality measures," Journal of Econometrics, Elsevier, Elsevier, vol. 42(1), pages 27-41, September.
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