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The rising wage inequality in Mexico, 1984-2000: A distributional analysis

Gurleen Popli

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we look at the distribution of wages to examine the extent and cause of the increasing wage inequality in Mexico over the last two decades (1984 to 2000). To understand the causes of the increase in inequality over time we do a counterfactual analysis. We find that over the last two decades not only did the inequality increase, there also was an erosion of real wages, and it's the middle class which was affected the most. Main reason for the decrease in real wages was the declining unionization in the country. While the main reason for the rise in inequality was the changing distribution of skills.

Keywords: kernel density estimation; counterfactual distribution; unions; trade liberalization; changing distribution of skills (search for similar items in EconPapers)
JEL-codes: C14 J31 (search for similar items in EconPapers)
Date: 2006, Revised 2006
New Economics Papers: this item is included in nep-his, nep-int and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Rising Wage Inequality in Mexico, 1984-2000: A Distributional Analysis (2007) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:399

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