Labour income inequality in Mexico: Puzzles solved and unsolved

Raymundo Campos-Vazquez and Nora Lustig

No 1719, Working Papers from Tulane University, Department of Economics

Abstract: We analyze the evolution and proximate determinants of labour income inequality in Mexico between 1989 and 2017. Labour income inequality increased between 1989 and 1994 and declined between 1994 and 2006. What happened after 2006 is subject to uncertainty. The national labour force survey shows a steady decline and the income expenditure survey suggests that inequality increased. We correct for high and rising item (labour income) non-response and under-representation of high-wage earners through a 'hot deck' imputation method and post-survey weight adjustments. We obtain the new weights for formal workers from tabulations recently released by the Mexican social security administration. For informal workers, we correct using the hot deck imputation method. With corrected data, inequality no longer declines between 2006 and 2017.

Keywords: inequality; labour income; post-survey reweighting; imputation; decomposition methods; Mexico (search for similar items in EconPapers)
JEL-codes: D31 D63 I24 J31 O54 (search for similar items in EconPapers)
Date: 2017-11
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Citations: View citations in EconPapers (12)

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Working Paper: Labour income inequality in Mexico: Puzzles solved and unsolved (2017)
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