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Family Income Inequality and the Role of Married Females' Earnings in Mexico: 1988-2010

  • Raymundo M. Campos Vazquez

    ()

    (El Colegio de México)

  • Andres Hincapie

    ()

    (Washington University in St. Louis)

  • Ruben Irvin Rojas-Valdes

    ()

    (El Colegio de México)

We study family income inequality in Mexico from 1988 to 2010. The share of married females' income among married couples grew from 13 to 23 percent in the period. However, the correlation of married males' and married females' earnings has been fairly stable at 0.28, one of the highest correlations recorded across countries. We follow Cancian and Reed's (1999) methodology in order to analize whether married females' income equalizes total family income distribution. We investigate several counterfactuals and conclude that the increment in female employment has contributed to a decrease in family income inequality through a rise in married females' labor supply in poor families.

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File URL: http://cee.colmex.mx/documentos/documentos-de-trabajo/2012/dt20128.pdf
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Paper provided by El Colegio de México, Centro de Estudios Económicos in its series Serie documentos de trabajo del Centro de Estudios Económicos with number 2012-08.

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Date of creation: Apr 2012
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Handle: RePEc:emx:ceedoc:2012-08
Contact details of provider: Web page: http://www.colmex.mx/centros/cee/

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  1. Maria Cancian & Deborah Reed, 1998. "Assessing The Effects Of Wives' Earnings On Family Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 73-79, February.
  2. Raymundo M. Campos-Vázquez, 2010. "Why did wage inequality decrease in Mexico after NAFTA?," Serie documentos de trabajo del Centro de Estudios Económicos 2010-15, El Colegio de México, Centro de Estudios Económicos.
  3. Iulie Aslaksen & Tom Wennemo & Rolf Aaberge, 2005. "'Birds of a Feather Flock Together': The Impact of Choice of Spouse on Family Labor Income Inequality ," LABOUR, CEIS, vol. 19(3), pages 491-515, 09.
  4. David Fairris, 2003. "Unions and wage inequality in Mexico," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(3), pages 481-497, April.
  5. David Johnson & Roger Wilkins, 2004. "Effects of Changes in Family Composition and Employment Patterns on the Distribution of Income in Australia: 1981-1982 to 1997-1998," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 219-238, 06.
  6. 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.
  7. Del Boca, Daniela & Pasqua, Silvia, 2002. "Employment Patterns of Husbands and Wives and Family Income Distribution in Italy (1977-1998)," IZA Discussion Papers 489, Institute for the Study of Labor (IZA).
  8. Raymond Robertson, 2007. "Trade and Wages: Two Puzzles from Mexico," The World Economy, Wiley Blackwell, vol. 30(9), pages 1378-1398, 09.
  9. Silvia Pasqua, 2002. "Wives’ Work And Income Distribution In European Countries," CHILD Working Papers wp01_02, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  10. Mary C. Daly & Robert G. Valletta, 2006. "Inequality and Poverty in United States: The Effects of Rising Dispersion of Men's Earnings and Changing Family Behaviour," Economica, London School of Economics and Political Science, vol. 73(289), pages 75-98, 02.
  11. Maria Cancian & Deborah Reed, 1999. "The impact of wives’ earnings on income inequality: Issues and estimates," Demography, Springer, vol. 36(2), pages 173-184, May.
  12. Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October.
  13. Emmanuel Skoufias & Susan Parker, 2006. "Job loss and family adjustments in work and schooling during the Mexican peso crisis," Journal of Population Economics, Springer, vol. 19(1), pages 163-181, February.
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