Accounting for Mexican Income Inequality during the 1990s

The author implements several inequality decomposition methods to measure the extent to which total household income disparities can be attributable to sectoral asymmetries and differences in skill endowments. The results show that at least half of...

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Main Author:	De Hoyos, Rafael E.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ADVERSE EFFECT AGRICULTURAL INCOMES AVERAGE ANNUAL AVERAGE INCOME COUNTERFACTUAL DEBT DECOMPOSITION ANALYSIS DECOMPOSITION RESULTS DECOMPOSITION TECHNIQUES DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVALUATION DEVELOPMENT STRATEGY DISTRIBUTIONAL CHANGES DISTRIBUTIONAL EFFECTS DISTRIBUTIONAL IMPACT EARNING ECONOMIC GROWTH ECONOMIC ORDER ECONOMIC REFORMS ECONOMIC STRUCTURE ECONOMIES OF SCALE EMPIRICAL EVIDENCE EXPECTED VALUE EXPLANATORY VARIABLES EXPORTS FACTOR COMPONENTS FREE TRADE FUNCTIONAL FORM FUTURE RESEARCH GDP GINI COEFFICIENT GROWING ECONOMY GROWTH DATA HIGH INCOME HIGH INCOME INEQUALITY HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SIZE HUMAN CAPITAL INCOME INCOME COMPONENTS INCOME DIFFERENCES INCOME DISPARITIES INCOME DISTRIBUTION INCOME EQUATION INCOME INEQUALITY INCOME LEVEL INCOME QUINTILES INCOME SOURCE INCOME SOURCES INCOMES INEQUALITY AVERSION INEQUALITY AVERSION PARAMETER INEQUALITY CHANGES INEQUALITY DECOMPOSITION INEQUALITY INDEX INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY TRENDS INTERNATIONAL TRADE LABOR MARKET LABOR MARKETS LORENZ CURVE MACROECONOMIC CONTEXT MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MIDDLE CLASS NATURAL DECOMPOSITION NEGATIVE EFFECT NEGATIVE SHOCK PER CAPITA INCOMES PERSONAL INCOME POLICY RESEARCH POOR POSITIVE EFFECT POSITIVE IMPACT POVERTY LINES PRICE CHANGES PRODUCTION FUNCTION PRODUCTION INPUTS REAL INCOME REAL INCOMES REDISTRIBUTIVE POLICIES REGIONAL DUMMIES REGRESSION ANALYSIS REGRESSION RESULTS RELATIVE IMPORTANCE RELATIVE WAGES REMUNERATION REMUNERATIONS SECTORAL COMPOSITION SIGNIFICANT IMPACT SOCIAL DEVELOPMENT SURVEY DESIGN TRADE BARRIERS TRADE LIBERALIZATION TRADE REFORMS UNEMPLOYMENT WELFARE ECONOMICS
Online Access:	http://documents.worldbank.org/curated/en/2007/05/7576039/accounting-mexican-income-inequality-during-1990s http://hdl.handle.net/10986/7078

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recordtype	oai_dc
spelling	okr-10986-70782021-04-23T14:02:33Z Accounting for Mexican Income Inequality during the 1990s De Hoyos, Rafael E. ADVERSE EFFECT AGRICULTURAL INCOMES AVERAGE ANNUAL AVERAGE INCOME COUNTERFACTUAL DEBT DECOMPOSITION ANALYSIS DECOMPOSITION RESULTS DECOMPOSITION TECHNIQUES DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVALUATION DEVELOPMENT STRATEGY DISTRIBUTIONAL CHANGES DISTRIBUTIONAL EFFECTS DISTRIBUTIONAL IMPACT EARNING ECONOMIC GROWTH ECONOMIC ORDER ECONOMIC REFORMS ECONOMIC STRUCTURE ECONOMIES OF SCALE EMPIRICAL EVIDENCE EXPECTED VALUE EXPLANATORY VARIABLES EXPORTS FACTOR COMPONENTS FREE TRADE FUNCTIONAL FORM FUTURE RESEARCH GDP GINI COEFFICIENT GROWING ECONOMY GROWTH DATA HIGH INCOME HIGH INCOME INEQUALITY HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SIZE HUMAN CAPITAL INCOME INCOME COMPONENTS INCOME DIFFERENCES INCOME DISPARITIES INCOME DISTRIBUTION INCOME EQUATION INCOME INEQUALITY INCOME LEVEL INCOME QUINTILES INCOME SOURCE INCOME SOURCES INCOMES INEQUALITY AVERSION INEQUALITY AVERSION PARAMETER INEQUALITY CHANGES INEQUALITY DECOMPOSITION INEQUALITY INDEX INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY TRENDS INTERNATIONAL TRADE LABOR MARKET LABOR MARKETS LORENZ CURVE MACROECONOMIC CONTEXT MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MIDDLE CLASS NATURAL DECOMPOSITION NEGATIVE EFFECT NEGATIVE SHOCK PER CAPITA INCOMES PERSONAL INCOME POLICY RESEARCH POOR POSITIVE EFFECT POSITIVE IMPACT POVERTY LINES PRICE CHANGES PRODUCTION FUNCTION PRODUCTION INPUTS REAL INCOME REAL INCOMES REDISTRIBUTIVE POLICIES REGIONAL DUMMIES REGRESSION ANALYSIS REGRESSION RESULTS RELATIVE IMPORTANCE RELATIVE WAGES REMUNERATION REMUNERATIONS SECTORAL COMPOSITION SIGNIFICANT IMPACT SOCIAL DEVELOPMENT SURVEY DESIGN TRADE BARRIERS TRADE LIBERALIZATION TRADE REFORMS UNEMPLOYMENT WELFARE ECONOMICS The author implements several inequality decomposition methods to measure the extent to which total household income disparities can be attributable to sectoral asymmetries and differences in skill endowments. The results show that at least half of total household inequality in Mexico is attributable to incomes derived from entrepreneurial activities, an income source rarely scrutinized in the inequality literature. He shows that education (skills) endowments are unevenly distributed among the Mexican population, with positive shifts in the market returns to schooling associated with increases in inequality. Asymmetries in the allocation of education explain around 20 percent of overall household income disparities in Mexico during the 1990s. Moreover, the proportion of inequality attributable to education endowments increases during stable periods and reduces during the crisis. This pattern is explained by shifts in returns to schooling rather than changes in the distribution of skills. Applying the same techniques to decompose within-sector income differences, the author finds that skill endowments can account for as much as 25 percent of earnings disparities but as little as 5 percent of dispersion in other income sources. 2012-06-04T22:09:59Z 2012-06-04T22:09:59Z 2007-05 http://documents.worldbank.org/curated/en/2007/05/7576039/accounting-mexican-income-inequality-during-1990s http://hdl.handle.net/10986/7078 English Policy Research Working Paper; No. 4224 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ADVERSE EFFECT AGRICULTURAL INCOMES AVERAGE ANNUAL AVERAGE INCOME COUNTERFACTUAL DEBT DECOMPOSITION ANALYSIS DECOMPOSITION RESULTS DECOMPOSITION TECHNIQUES DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVALUATION DEVELOPMENT STRATEGY DISTRIBUTIONAL CHANGES DISTRIBUTIONAL EFFECTS DISTRIBUTIONAL IMPACT EARNING ECONOMIC GROWTH ECONOMIC ORDER ECONOMIC REFORMS ECONOMIC STRUCTURE ECONOMIES OF SCALE EMPIRICAL EVIDENCE EXPECTED VALUE EXPLANATORY VARIABLES EXPORTS FACTOR COMPONENTS FREE TRADE FUNCTIONAL FORM FUTURE RESEARCH GDP GINI COEFFICIENT GROWING ECONOMY GROWTH DATA HIGH INCOME HIGH INCOME INEQUALITY HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SIZE HUMAN CAPITAL INCOME INCOME COMPONENTS INCOME DIFFERENCES INCOME DISPARITIES INCOME DISTRIBUTION INCOME EQUATION INCOME INEQUALITY INCOME LEVEL INCOME QUINTILES INCOME SOURCE INCOME SOURCES INCOMES INEQUALITY AVERSION INEQUALITY AVERSION PARAMETER INEQUALITY CHANGES INEQUALITY DECOMPOSITION INEQUALITY INDEX INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY TRENDS INTERNATIONAL TRADE LABOR MARKET LABOR MARKETS LORENZ CURVE MACROECONOMIC CONTEXT MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MIDDLE CLASS NATURAL DECOMPOSITION NEGATIVE EFFECT NEGATIVE SHOCK PER CAPITA INCOMES PERSONAL INCOME POLICY RESEARCH POOR POSITIVE EFFECT POSITIVE IMPACT POVERTY LINES PRICE CHANGES PRODUCTION FUNCTION PRODUCTION INPUTS REAL INCOME REAL INCOMES REDISTRIBUTIVE POLICIES REGIONAL DUMMIES REGRESSION ANALYSIS REGRESSION RESULTS RELATIVE IMPORTANCE RELATIVE WAGES REMUNERATION REMUNERATIONS SECTORAL COMPOSITION SIGNIFICANT IMPACT SOCIAL DEVELOPMENT SURVEY DESIGN TRADE BARRIERS TRADE LIBERALIZATION TRADE REFORMS UNEMPLOYMENT WELFARE ECONOMICS
spellingShingle	ADVERSE EFFECT AGRICULTURAL INCOMES AVERAGE ANNUAL AVERAGE INCOME COUNTERFACTUAL DEBT DECOMPOSITION ANALYSIS DECOMPOSITION RESULTS DECOMPOSITION TECHNIQUES DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVALUATION DEVELOPMENT STRATEGY DISTRIBUTIONAL CHANGES DISTRIBUTIONAL EFFECTS DISTRIBUTIONAL IMPACT EARNING ECONOMIC GROWTH ECONOMIC ORDER ECONOMIC REFORMS ECONOMIC STRUCTURE ECONOMIES OF SCALE EMPIRICAL EVIDENCE EXPECTED VALUE EXPLANATORY VARIABLES EXPORTS FACTOR COMPONENTS FREE TRADE FUNCTIONAL FORM FUTURE RESEARCH GDP GINI COEFFICIENT GROWING ECONOMY GROWTH DATA HIGH INCOME HIGH INCOME INEQUALITY HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD MEMBERS HOUSEHOLD SIZE HUMAN CAPITAL INCOME INCOME COMPONENTS INCOME DIFFERENCES INCOME DISPARITIES INCOME DISTRIBUTION INCOME EQUATION INCOME INEQUALITY INCOME LEVEL INCOME QUINTILES INCOME SOURCE INCOME SOURCES INCOMES INEQUALITY AVERSION INEQUALITY AVERSION PARAMETER INEQUALITY CHANGES INEQUALITY DECOMPOSITION INEQUALITY INDEX INEQUALITY LEVELS INEQUALITY MEASURE INEQUALITY MEASURES INEQUALITY TRENDS INTERNATIONAL TRADE LABOR MARKET LABOR MARKETS LORENZ CURVE MACROECONOMIC CONTEXT MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MIDDLE CLASS NATURAL DECOMPOSITION NEGATIVE EFFECT NEGATIVE SHOCK PER CAPITA INCOMES PERSONAL INCOME POLICY RESEARCH POOR POSITIVE EFFECT POSITIVE IMPACT POVERTY LINES PRICE CHANGES PRODUCTION FUNCTION PRODUCTION INPUTS REAL INCOME REAL INCOMES REDISTRIBUTIVE POLICIES REGIONAL DUMMIES REGRESSION ANALYSIS REGRESSION RESULTS RELATIVE IMPORTANCE RELATIVE WAGES REMUNERATION REMUNERATIONS SECTORAL COMPOSITION SIGNIFICANT IMPACT SOCIAL DEVELOPMENT SURVEY DESIGN TRADE BARRIERS TRADE LIBERALIZATION TRADE REFORMS UNEMPLOYMENT WELFARE ECONOMICS De Hoyos, Rafael E. Accounting for Mexican Income Inequality during the 1990s
geographic_facet	Latin America & Caribbean Mexico
relation	Policy Research Working Paper; No. 4224
description	The author implements several inequality decomposition methods to measure the extent to which total household income disparities can be attributable to sectoral asymmetries and differences in skill endowments. The results show that at least half of total household inequality in Mexico is attributable to incomes derived from entrepreneurial activities, an income source rarely scrutinized in the inequality literature. He shows that education (skills) endowments are unevenly distributed among the Mexican population, with positive shifts in the market returns to schooling associated with increases in inequality. Asymmetries in the allocation of education explain around 20 percent of overall household income disparities in Mexico during the 1990s. Moreover, the proportion of inequality attributable to education endowments increases during stable periods and reduces during the crisis. This pattern is explained by shifts in returns to schooling rather than changes in the distribution of skills. Applying the same techniques to decompose within-sector income differences, the author finds that skill endowments can account for as much as 25 percent of earnings disparities but as little as 5 percent of dispersion in other income sources.
format	Publications & Research :: Policy Research Working Paper
author	De Hoyos, Rafael E.
author_facet	De Hoyos, Rafael E.
author_sort	De Hoyos, Rafael E.
title	Accounting for Mexican Income Inequality during the 1990s
title_short	Accounting for Mexican Income Inequality during the 1990s
title_full	Accounting for Mexican Income Inequality during the 1990s
title_fullStr	Accounting for Mexican Income Inequality during the 1990s
title_full_unstemmed	Accounting for Mexican Income Inequality during the 1990s
title_sort	accounting for mexican income inequality during the 1990s
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/05/7576039/accounting-mexican-income-inequality-during-1990s http://hdl.handle.net/10986/7078
_version_	1764401844979761152

Accounting for Mexican Income Inequality during the 1990s

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