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Changes in Wage Inequality in Mexico: A Decomposition Analysis

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  • Claudia Tello

    (University of Barcelona)

Abstract

We analyse the changes in earnings inequality in Mexico and the Mexican regions from 1987 to 2008. Using the Jenkins-van Kern decomposition method, we distinguish two major components: progressivity, which reflects the pro-poor (or pro-rich) orientation of wage growth, and re-ranking, which measures the movements of individuals in the wage hierarchy. At the national level, progressivity has been systematically pro-poor, but re-ranking has to a large extent offset this pro-equality dynamic. Similar variations are found for the Mexican regions. The South, the Border and the Centre have, however, witnessed a decrease in inequality, whereas inequality has increased in the North and the Capital regions.

Suggested Citation

  • Claudia Tello, 2012. "Changes in Wage Inequality in Mexico: A Decomposition Analysis," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 63-82, November.
    • Handle: RePEc:jid:journl:y:2012:v:21:i:3-4:p:63-82
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    File URL: http://jid.journals.yorku.ca/index.php/jid/article/view/38673
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    More about this item

    Keywords

    Mexico; regional decomposition; re-ranking; pro-poor growth;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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