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Rising Inequality in Mexico: Household Characteristics and Regional Effects

Cesar Patricio Bouillon (), Arianna Legovini and Nora Lustig ()

Journal of Development Studies, 2003, vol. 39, issue 4, 112-133

Abstract: We use an empirical framework to identify the contributions of microeconomic factors to the sharp rise in household (per capita) income inequality in Mexico between 1984 and 1994. Results indicate that changes in returns to household characteristics, in particular changes in returns to education, are responsible for about half of the increase in the Gini coefficient. The deteriorating conditions in rural areas relative to the urban areas and of the southern region relative to other regions account for another fourth of the increase in the Gini.

Keywords: household income inequality; Mexico; Gini coefficient; regional effects (search for similar items in EconPapers)
Date: 2003
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Handle: RePEc:taf:jdevst:v:39:y:2003:i:4:p:112-133