IDEAS home Printed from https://ideas.repec.org/a/emx/esteco/v29y2014i1p107-123.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/72/73
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gerardo Esquivel, 2011. "The Dynamics of Income Inequality in Mexico since NAFTA," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, 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.
    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. 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.

    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. Raymundo M. Campos-Vazquez & Nora Lustig, 2017. "Labour income inequality in Mexico: Puzzles solved and unsolved," Working Papers 1719, Tulane University, Department of Economics.
    2. Raymundo M. Campos-Vazquez & Nora Lustig, 2017. "Labour income inequality in Mexico: Puzzles solved and unsolved," Working Papers 1719, Tulane University, Department of Economics.
    3. Raymundo Campos-Vázquez & Nora Lustig & John Scott, 2018. "Inequality in Mexico: Labour markets and fiscal redistribution 1989–2014," WIDER Working Paper Series 188, World Institute for Development Economic Research (UNU-WIDER).
    4. Raymundo M. Campos-Vázquez & Nora Lustig & John Scott, 2018. "Inequality in Mexico: Labour markets and fiscal redistribution 1989-2014," WIDER Working Paper Series wp-2018-188, World Institute for Development Economic Research (UNU-WIDER).
    5. Eduardo Michel Camacho & Willy W. Cortez, 2012. "Distribución del ingreso y bienestar social en México 1984-2008," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(2), pages 347-378.
    6. Fernando Riosmena & Douglas S. Massey, 2012. "Pathways to El Norte: Origins, Destinations, and Characteristics of Mexican Migrants to the United States," International Migration Review, Wiley Blackwell, vol. 46(1), pages 3-36, March.
    7. Gordon Hanson & Chen Liu & Craig McIntosh, 2017. "The Rise and Fall of U.S. Low-Skilled Immigration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 83-168.
    8. Cong Minh Huynh & Nam Hoai Tran, 2023. "Financial development, income inequality, and institutional quality: A multi-dimensional analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2242128-224, June.
    9. Enrique Leonardo Kato Vidal, 2015. "Violence in Mexico: An economic rationale of crime and its impacts," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 12(2), pages 93-108, Julio-Dic.
    10. Mesbah Motamed & Kenneth A. Foster & Wallace E. Tyner, 2008. "Applying cointegration and error correction to measure trade linkages: maize prices in the United States and Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 39(1), pages 29-39, July.
    11. Carlos Gerardo Acevedo & Maynor Cabrera, 2012. "Social Policies or Private Solidarity?: The Equalizing Role of Migration and Remittances in El Salvador," WIDER Working Paper Series wp-2012-013, World Institute for Development Economic Research (UNU-WIDER).
    12. Robert A. Blecker, 2015. "Integration, Productivity, and Inclusion in Mexico: A Macro Perspective," Working Papers 2015-06, American University, Department of Economics.
    13. Medeiros, Marcelo & Souza, Pedro H.G.F., 2013. "The State and income inequality in Brazil," Institute for Research on Labor and Employment, Working Paper Series qt584222f0, Institute of Industrial Relations, UC Berkeley.
    14. Raymundo M. Campos-Vázquez, 2013. "Why did wage inequality decrease in Mexico after NAFTA?," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(2), pages 245-278, July-Dece.
    15. Ana Escoto Castillo & Landy Sánchez Peña, 2017. "Diffusion of Electricity Consumption Practices in Mexico," Social Sciences, MDPI, vol. 6(4), pages 1-24, November.
    16. Elena Ianchovichina & Alessandro Nicita & Isidro Soloaga, 2002. "Trade Reform and Poverty: The Case of Mexico," The World Economy, Wiley Blackwell, vol. 25(7), pages 945-972, July.
    17. Claudia Tello & Raul Ramos & Manuel Artís, 2012. "Changes in wage structure in Mexico going beyond the mean: An analysis of differences in distribution, 1987-2008," Working Papers XREAP2012-07, Xarxa de Referència en Economia Aplicada (XREAP), revised May 2012.
    18. Timothy Halliday & Daniel Lederman & Raymond Robertson, 2018. "Tracking wage inequality trends with prices and different trade models: evidence from Mexico," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(1), pages 47-73, February.
    19. Fernando Borraz & Máximo Rossi & Daniel Ferres, 2012. "Distributive Effects of Regional Trade Agreements on the ‘Small Trading Partners’: Mercosur and the Case of Uruguay and Paraguay," Journal of Development Studies, Taylor & Francis Journals, vol. 48(12), pages 1828-1843, December.
    20. Perez, Victor, 2015. "Moving in and out of poverty in Mexico: What can we learn from pseudo-panel methods?," ISER Working Paper Series 2015-16, Institute for Social and Economic Research.

    More about this item

    Keywords

    ENIGH; México; labor income; measurement; inequality;
    All these keywords.

    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

    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:emx:esteco:v:29:y:2014:i:1:p:107-123. 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: Ximena Varela (email available below). General contact details of provider: https://edirc.repec.org/data/cecolmx.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.