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The Evolution of Industrial Earnings Inequality in Mexico and Brazil

  • Calmon, Paulo Du Pin, et al
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    Industrial data are used to derive estimates of the pattern of change in wage inequality in Mexico and Brazil. Using the group decomposition of Theil's T-statistic, the paper presents monthly changes in the dispersion of industrial wages for Brazil (1976 through 1995) and for Mexico (1968 through 1998). Both countries show increases in wage dispersion over time, and a strong negative correlation is found with the rate of real economic growth. Other things equal, the later Brazilian heterodox stabilization plans seem to have reduced inequality in the short run. Copyright 2000 by Blackwell Publishing Ltd

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    Article provided by Wiley Blackwell in its journal Review of Development Economics.

    Volume (Year): 4 (2000)
    Issue (Month): 2 (June)
    Pages: 194-203

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    Handle: RePEc:bla:rdevec:v:4:y:2000:i:2:p:194-203
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    1. Anand, Sudhir & Kanbur, S. M. R., 1993. "Inequality and development A critique," Journal of Development Economics, Elsevier, vol. 41(1), pages 19-43, June.
    2. Fishlow, Albert, 1972. "Brazilian Size Distribution of Income," American Economic Review, American Economic Association, vol. 62(2), pages 391-402, May.
    3. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-85, November.
    4. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, vol. 3(4), pages 307-342, December.
    5. Galor, Oded & Tsiddon, Daniel, 1996. "Income Distribution and Growth: The Kuznets Hypothesis Revisited," Economica, London School of Economics and Political Science, vol. 63(250), pages S103-17, Suppl..
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