Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80910
Authors: 
Campos, Raymundo
Esquivel, Gerardo
Lustig, Nora
Year of Publication: 
2012
Series/Report no.: 
WIDER Working Paper 2012/10
Abstract: 
Inequality in Mexico rose between 1989 and 1994 and declined between 1994 and 2010. We examine the role of market forces (demand and supply of labour by skill), institutional factors (minimum wages and unionization rate), and public policy (cash transfers) in explaining changes in inequality. We apply the re-centred influence function method to decompose changes in hourly wages into characteristics and returns. The main driver is changes in returns. Returns rose (1989-94) due to institutional factors and labour demand. Returns declined (1994-2006) due to changes in supply and, to a lesser extent, in demand; institutional factors were not relevant. Government transfers contributed to the decline in inequality, especially after 2000.
Subjects: 
inequality
wages
disposable income
labour markets
Mexico
JEL: 
D31
J20
J31
O54
ISBN: 
978-929-230-473-7
Document Type: 
Working Paper

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