Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/80910 
Year of Publication: 
2012
Series/Report no.: 
WIDER Working Paper No. 2012/10
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
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

Files in This Item:
File
Size
807.07 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.