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A methodological note on the measurement of labor income in Mexico

Listed author(s):
  • Raymundo M. Campos Vazquez

    (El Colegio de México)

  • Nora Lustig

    (Tulane University)

  • Alma S. Santillán

    (El Colegio de México)

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.

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File URL: http://estudioseconomicos.colmex.mx/archivo/EstudiosEconomicos2014/107-123.pdf
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Article provided by El Colegio de México, Centro de Estudios Económicos in its journal Estudios Económicos.

Volume (Year): 29 (2014)
Issue (Month): 1 ()
Pages: 107-123

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Handle: RePEc:emx:esteco:v:29:y:2014:i:1:p:107-123
Contact details of provider: Web page: http://www.colmex.mx/centros/cee/

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  1. Gerardo Esquivel, 2011. "The Dynamics of Income Inequality in Mexico since NAFTA," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2011), pages 155-188, August.
  2. Lopez-Acevedo, Gladys & Salinas, Angel, 2000. "How Mexico's financial crisis affected income distribution," Policy Research Working Paper Series 2406, The World Bank.
  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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