Inequality in Mexico: Labour markets and fiscal redistribution 1989-2014

Raymundo Campos-Vazquez, Nora Lustig and John Scott

No wp-2018-188, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Income inequality in Mexico increased between 1989 and 1994; between 1994 and 2006, inequality declined; and, between 2006 and 2014, inequality was again on the rise. We apply decomposition techniques to analyse the proximate determinants of labour income inequality and fiscal incidence analysis to estimate the first-order effects of taxes and social spending on the distribution of income. The key component that underlies the 'rise-decline-rise again' pattern was the evolution of returns to skills.

Keywords: Labour income; Inequality; Top incomes; Poverty; Fiscal redistribution (search for similar items in EconPapers)
Date: 2018
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