The dynamics of income inequality in Mexico since NAFTA
This paper reviews the pattern of income inequality in Mexico since 1994. It shows that in the past few years there has been an important reduction of income inequality in Mexico, which has almost reverted the sharp increase in inequality observed between 1984 and 1994. Using a Gini decomposition exercise we conclude that labor income, transfers and remittances have all played an important role in this process. We also argue that the equalizing effect of labor income and the reduction of wage inequality in Mexico can be explained by a structural change in Mexico‟s workforce composition in terms of education and experience. In general, we conclude that the recent reduction of inequality in Mexico is due to the interaction of both, the market and the State.
|Date of creation:||Nov 2010|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.colmex.mx/centros/cee/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Esquivel, Gerardo & Rodriguez-Lopez, Jose Antonio, 2003. "Technology, trade, and wage inequality in Mexico before and after NAFTA," Journal of Development Economics, Elsevier, vol. 72(2), pages 543-565, December.
- Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-56, February.
- Raymond Robertson, 2007. "Trade and Wages: Two Puzzles from Mexico," The World Economy, Wiley Blackwell, vol. 30(9), pages 1378-1398, 09.
- Ferreira, Francisco H.G. & Leite, Phillippe G. & Wai-Poi, Matthew, 2007.
"Trade Liberalization, Employment Flows and Wage Inequality in Brazil,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Ferreira, Francisco H. G. & Leite, Phillippe G. & Wai-Poi, Matthew, 2007. "Trade liberalization, employment flows, and wage inequality in Brazil," Policy Research Working Paper Series 4108, The World Bank.
- Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-40, September.
- Pablo Acosta & Gabriel V. Montes-Rojas, 2008. "Trade Reform and Inequality: The Case of Mexico and Argentina in the 1990s," The World Economy, Wiley Blackwell, vol. 31(6), pages 763-780, 06.
- Aaron Tornell & Gerardo Esquivel Hernández, 1997.
"The Political Economy of Mexico's Entry into NAFTA,"
in: Regionalism versus Multilateral Trade Arrangements, NBER-EASE Volume 6, pages 25-56
National Bureau of Economic Research, Inc.
- Fairris, David & Popli, Gurleen & Zepeda, Eduardo, 2006. "Minimum wages and wage structure in Mexico," MPRA Paper 400, University Library of Munich, Germany, revised 2006.
- Gordon H. Hanson & Ann Harrison, 1999. "Trade Liberalization and Wage Inequality in Mexico," ILR Review, Cornell University, ILR School, vol. 52(2), pages 271-288, January.
- Atolia, Manoj, 2007.
"Trade liberalization and rising wage inequality in Latin America: Reconciliation with HOS theory,"
Journal of International Economics,
Elsevier, vol. 71(2), pages 467-494, April.
- Manoj Atolia, 2002. "Trade Liberalization and Rising Wage Inequality in Latin America: Reconciliation with HOS Theory," Working Papers wp2002_03_01, Department of Economics, Florida State University, revised Feb 2006.
- Cesar Patricio Bouillon & Arianna Legovini & Nora Lustig, 2003. "Rising Inequality in Mexico: Household Characteristics and Regional Effects," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 112-133.
- Daniel Chiquiar, 2004.
"Globalization, Regional Wage Differentials and the Stolper-Samuelson Theorem: Evidence from México,"
2004-06, Banco de México.
- Chiquiar, Daniel, 2008. "Globalization, regional wage differentials and the Stolper-Samuelson Theorem: Evidence from Mexico," Journal of International Economics, Elsevier, vol. 74(1), pages 70-93, January.
- Leonardo Gasparini & Guillero Cruces & Leopoldo Tornarolli, 2011.
"Recent Trends In Income Inequality In Latin America,"
ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION,
ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Spring 20), pages 147-201, January.
- Leonardo Gasparini & Guillermo Cruces & Leopoldo Tornarolli, 2009. "Recent trends in income inequality in Latin America," Working Papers 132, ECINEQ, Society for the Study of Economic Inequality.
- Jim Airola & Chinhui Juhn, 2008.
"Wage Inequality in Post-Reform Mexico,"
Journal of Income Distribution,
Journal of Income Distribution, vol. 17(1), pages 110-134, March.
- Verhoogen, Eric, 2007.
"Trade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector,"
IZA Discussion Papers
2913, Institute for the Study of Labor (IZA).
- Verhoogen, Eric A, 2007. "Trade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector," CEPR Discussion Papers 6385, C.E.P.R. Discussion Papers.
- Ana Corbacho & Gerd Schwartz, 2002. "Mexico; Experiences with Pro-Poor Expenditure Policies," IMF Working Papers 02/12, International Monetary Fund.
- Guillermo Cruces & Leonardo Gasparini, 2008. "A Distribution in Motion: The Case of Argentina," CEDLAS, Working Papers 0078, CEDLAS, Universidad Nacional de La Plata.
- Lopez-Acevedo, Gladys, 2006. "Mexico : two decades of the evolution of education and inequality," Policy Research Working Paper Series 3919, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:emx:ceedoc:2010-09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rocío Contreras Romo)
If references are entirely missing, you can add them using this form.