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Changes in Wage Inequality in Mexico: A Decomposition Analysis

Claudia Tello ()
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Claudia Tello: University of Barcelona

Journal of Income Distribution, 2012, vol. 21, issue 3-4, 63-82

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.

Keywords: Mexico; regional decomposition; re-ranking; pro-poor growth (search for similar items in EconPapers)
JEL-codes: C43 D31 D63 J01 J60 (search for similar items in EconPapers)
Date: 2012
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