IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v63y2017i4p685-705.html
   My bibliography  Save this article

Cross‐Sectional Versus Panel Income Approaches: Analyzing Income Distribution Changes for the Case of Mexico

Author

Listed:
  • Robert Duval‐Hernández
  • Gary S. Fields
  • George H. Jakubson

Abstract

In this paper we reconcile, both theoretically and empirically, changes in cross‐sectional inequality with patterns of panel income changes during periods of economic growth and decline. Using panel earnings data from Mexico, we find that the panel changes are convergent in almost every period, the reason being that a large number of individuals experience small convergent earnings changes while a small number of individuals experience large and convergent earnings changes. We examine what accounts for the inequality of log‐earnings at a point in time and for the inequality of the log of earnings averaged over five quarters. We find that the equalization brought about by panel earnings changes is mainly associated with changes in employment status and in sector of employment and not by personal characteristics such as schooling, age, and gender.

Suggested Citation

  • Robert Duval‐Hernández & Gary S. Fields & George H. Jakubson, 2017. "Cross‐Sectional Versus Panel Income Approaches: Analyzing Income Distribution Changes for the Case of Mexico," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(4), pages 685-705, December.
    • Handle: RePEc:bla:revinw:v:63:y:2017:i:4:p:685-705
    DOI: 10.1111/roiw.12271
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/roiw.12271
    Download Restriction: no
    File URL: https://libkey.io/10.1111/roiw.12271?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peter Gottschalk & Minh Huynh, 2010. "Are Earnings Inequality and Mobility Overstated? The Impact of Nonclassical Measurement Error," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 302-315, May.
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. Gary Fields & Robert Duval-Hernández & Samuel Freije & María Sánchez Puerta, 2015. "Earnings mobility, inequality, and economic growth in Argentina, Mexico, and Venezuela," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(1), pages 103-128, March.
    4. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    5. Myeong‐Su Yun, 2006. "Earnings Inequality In Usa, 1969–99: Comparing Inequality Using Earnings Equations," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(1), pages 127-144, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrea Bernini & Olaf J. de Groot, 2024. "The impact of trade on income inequality in Mexico," Economics Series Working Papers 1036, University of Oxford, Department of Economics.
    2. Robert Duval-Hernandez & Gary S. Fields & George H. Jakubson, 2020. "Inequality and Panel Income Changes: Conditions for Possibilities and Impossibilities," Working Papers 541, ECINEQ, Society for the Study of Economic Inequality.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pallab Ghosh & Jae Lee, 2016. "Decomposition of Changes in Korean Wage Inequality, 1998–2007," Journal of Labor Research, Springer, vol. 37(1), pages 1-28, March.
    2. Myeong‐Su Yun, 2009. "Wage Differentials, Discrimination And Inequality: A Cautionary Note On The Juhn, Murphy And Pierce Decomposition Method," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(1), pages 114-122, February.
    3. Usamah Fayez Al-Farhan, 2010. "A Detailed Decomposition of Changes in Wage Inequality in Reunified Post-transition Germany 1999-2006: Accounting for Sample Selection," SOEPpapers on Multidisciplinary Panel Data Research 269, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Robert Duval-Hernández & Gary S. Fields & George H. Jakubson, 2015. "Analysing Income Distribution Changes: Anonymous Versus Panel Income Approaches," WIDER Working Paper Series wp-2015-026, World Institute for Development Economic Research (UNU-WIDER).
    5. Pallab Kumar Ghosh & Jae Yoon Lee, 2016. "Decomposition of Changes in Korean Wage Inequality, 1998–2007," Journal of Labor Research, Springer, vol. 37(1), pages 1-28, March.
    6. Gary S.Fields & Robert Duval-Hernández & George H. Jakubson, 2015. "Analysing income distribution changes: Anonymous versus panel income approaches," WIDER Working Paper Series 026, World Institute for Development Economic Research (UNU-WIDER).
    7. Töpfer, Marina, 2017. "Detailed RIF decomposition with selection: The gender pay gap in Italy," Hohenheim Discussion Papers in Business, Economics and Social Sciences 26-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    8. Monsueto, Sandro Eduardo & Simão, Rosycler Cristal Santos, 2008. "The impact of gender discrimination on poverty in Brazil," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    9. Qu, Zhaopeng (Frank) & Zhao, Zhong, 2008. "Urban-Rural Consumption Inequality in China from 1988 to 2002: Evidence from Quantile Regression Decomposition," IZA Discussion Papers 3659, Institute of Labor Economics (IZA).
    10. Victor Chernozhukov & Iván Fernández‐Val & Blaise Melly, 2013. "Inference on Counterfactual Distributions," Econometrica, Econometric Society, vol. 81(6), pages 2205-2268, November.
    11. Verdugo, G. & Fraisse, H. & Horny, G., 2012. "Changes In Wage Inequality In France: The Impact Of Composition Effects (in French)," Working papers 370, Banque de France.
    12. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    13. Tymon Słoczyński, 2015. "The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(4), pages 588-604, August.
    14. repec:dgr:rugggd:gd-114 is not listed on IDEAS
    15. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
    16. Atal, Juan Pablo & Ñopo, Hugo R. & Winder, Natalia, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," IDB Publications (Working Papers) 1131, Inter-American Development Bank.
    17. Luis Ayala & Javier Mart n-Rom n & Juan Vicente, 2023. "What Contributes to Rising Inequality in Large Cities?," LIS Working papers 850, LIS Cross-National Data Center in Luxembourg.
    18. Nicodemo, Catia & Raya, Josep M., 2018. "Does Juan Carlos or Nelson Obtain a Larger Price Cut in the Spanish Housing Market?," IZA Discussion Papers 11811, Institute of Labor Economics (IZA).
    19. Ferreira, Francisco H. G. & Firpo, Sergio & Messina, Julián, 2017. "Ageing Poorly? Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012," IZA Discussion Papers 10656, Institute of Labor Economics (IZA).
    20. Ceriani,Lidia & Inchauste Comboni,Maria Gabriela & Olivieri,Sergio Daniel, 2015. "Understanding poverty reduction in Sri Lanka : evidence from 2002 to 2012/13," Policy Research Working Paper Series 7446, The World Bank.
    21. Anna Lukiyanova, 2013. "Earnings inequality and informal Employment in Russia," HSE Working papers WP BRP 37/EC/2013, National Research University Higher School of Economics.
    22. Zhu, Rong, 2016. "Wage differentials between urban residents and rural migrants in urban China during 2002–2007: A distributional analysis," China Economic Review, Elsevier, vol. 37(C), pages 2-14.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:63:y:2017:i:4:p:685-705. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iariwea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.