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A methodological note on the measurement of labor income in Mexico

Author

Listed:
  • Raymundo M. Campos Vazquez

    (El Colegio de México)

  • Nora Lustig

    (Tulane University)

  • Alma S. Santillán

    (El Colegio de México)

Abstract

In this methodological note we present a homogeneous measurement of labor income that is comparable over all years. Because the categories included in the definition of labor income have changed over time, an adjustment is necessary. In the measurement of inequality it is important not to include the year-end bonus (aguinaldo) or profit sharing (reparto de utilidades) as labor income. Under this adjusted definition, we find an inequality trend for the age group analyzed that is robust, regardless of whether the measurement is for the prior month or a normalized three-month period. For the prior month measurement, an increase in inequality is found until 1994, followed by a decrease until 2008. In the period 2008-2012, inequality remained relatively constant.

Suggested Citation

  • Raymundo M. Campos Vazquez & Nora Lustig & Alma S. Santillán, 2014. "A methodological note on the measurement of labor income in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 29(1), pages 107-123.
  • Handle: RePEc:emx:esteco:v:29:y:2014:i:1:p:107-123
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    File URL: http://estudioseconomicos.colmex.mx/archivo/EstudiosEconomicos2014/107-123.pdf
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    References listed on IDEAS

    as
    1. Lopez-Acevedo, Gladys & Salinas, Angel, 2000. "How Mexico's financial crisis affected income distribution," Policy Research Working Paper Series 2406, The World Bank.
    2. Gerardo Esquivel, 2011. "The Dynamics of Income Inequality in Mexico since NAFTA," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Fall 2011), pages 155-188, August.
    3. Borraz Fernando & Lopez-Cordova Jose Ernesto, 2007. "Has Globalization Deepened Income Inequality in Mexico?," Global Economy Journal, De Gruyter, vol. 7(1), pages 1-57, February.
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    Cited by:

    1. Caamal-Olvera, Cinthya G. & Rangel-González, Erick, 2015. "Measuring the impact of the Chinese competition on the Mexican Labor Market: 1990–2013," The North American Journal of Economics and Finance, Elsevier, vol. 34(C), pages 351-363.

    More about this item

    Keywords

    ENIGH; México; labor income; measurement; inequality;

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D30 - Microeconomics - - Distribution - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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