The dynamics of income inequality in Mexico since NAFTA

Gerardo Esquivel ()

Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos

Abstract: 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.

Keywords: income inequality; Mexico; NAFTA; Gini decomposition (search for similar items in EconPapers)
JEL-codes: D31 D33 E01 E24 (search for similar items in EconPapers)
Date: 2010-11
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Related works:
Journal Article: The Dynamics of Income Inequality in Mexico since NAFTA (2011)
Working Paper: The dynamics of income inequality in Mexico since NAFTA (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:emx:ceedoc:2010-09

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