Mexico : Two Decades of the Evolution of Education and Inequality

Mexico experienced a pronounced increase in the degree of inequality and earnings inequality over the 1980s and mid 1990s. Contrary to the trend in the distribution of total income inequality, there has been an improvement in the distribution of earnings inequality since 1996. This paper shows the following results. First, education has the highest gross contribution in explaining changes in earnings distribution. Second, both changes in the distribution of education and in the relative earnings among educational groups have always been in phase with the alterations in the earnings distribution. Specifically, when the income profile effect related to education became steeper and the inequality of education increased, the earnings distribution worsened (as in the 1988-96 period). Third, changes in the relative earnings among educational groups are always the leading force behind changes in inequality.

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Bibliographic Details
Main Author: López-Acevedo, Gladys
Language:English
Published: World Bank, Washington, DC 2006-05
Subjects:AGE GROUP, AGE GROUPS, ALLOCATION EFFECT, AVERAGE INCOME, BASIC EDUCATION, CAPITAL GAINS, COMPARATIVE ADVANTAGE, COMPETITIVE PRESSURE, DATA SET, DECOMPOSABLE INCOME INEQUALITY MEASURES, DECOMPOSITION ANALYSIS, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DYNAMIC DECOMPOSITION, EARNINGS INEQUALITIES, EARNINGS INEQUALITY, ECONOMETRICS, ECONOMIC DEVELOPMENT, ECONOMIC SECTOR, ECONOMIC SECTORS, ECONOMIC STAGNATION, ECONOMIC STUDIES, EDUCATIONAL ATTAINMENT, EDUCATIONAL DISTRIBUTION, EDUCATIONAL LEVEL, EDUCATIONAL LEVELS, EMPIRICAL RESEARCH, EXPLAINING INEQUALITY, EXPLANATORY POWER, FINANCIAL SECTOR, FIRM LEVEL, FREE TRADE, GDP, GDP PER CAPITA, GINI COEFFICIENT, GROSS DOMESTIC PRODUCT, GROSS DOMESTIC PRODUCT PER CAPITA, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD SURVEY, HUMAN RESOURCES, ILLITERACY, INCOME, INCOME DISTRIBUTION, INCOME EFFECT, INCOME GROSS, INCOME GROUPS, INCOME INEQUALITY, INCOME LEVEL, INCOME PROFILE, INCOME SHARE, INCOMES, INCREASING RETURNS, INEQUALITY, INEQUALITY CHANGES, INEQUALITY INDEX, INEQUALITY MEASURES, JOB STATUS, JOBS, LABOR FORCE, LABOR INCOME, LABOR MARKET, LABOR SUPPLY, LATIN AMERICAN, MACROECONOMIC POLICIES, MANUFACTURING INDUSTRY, MARGINAL VALUE, MEAN INCOME, MINIMUM WAGE, OCCUPATIONS, POLICY RESEARCH, POPULATION SHARE, POVERTY REDUCTION, PRIMARY SCHOOL, QUANTILE REGRESSIONS, REAL GDP, REAL WAGE, REAL WAGE DECLINES, REAL WAGES, REGIONAL DIFFERENCES, REGRESSION TECHNIQUES, RELATIVE DEMAND, RELATIVE EARNINGS, RELATIVE INCOMES, RISING INEQUALITY, SEASONAL WORKERS, SKILLED LABOR, SKILLED WORKERS, STATE-OWNED ENTERPRISES, STRUCTURAL CHANGE, TERTIARY EDUCATION, TRADE BARRIERS, UNSKILLED WORKERS, URBAN EMPLOYMENT, URBAN EMPLOYMENT SURVEY, WAGE DIFFERENTIALS, WAGE DISPERSION, WAGE DISTRIBUTION, WAGE GAP, WAGE INEQUALITY, WAGE LEVEL, WAGE PREMIUMS, WELL-BEING,
Online Access:http://documents.worldbank.org/curated/en/2006/05/6783591/mexico-two-decades-evolution-education-inequality
https://hdl.handle.net/10986/8664
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Summary:Mexico experienced a pronounced increase in the degree of inequality and earnings inequality over the 1980s and mid 1990s. Contrary to the trend in the distribution of total income inequality, there has been an improvement in the distribution of earnings inequality since 1996. This paper shows the following results. First, education has the highest gross contribution in explaining changes in earnings distribution. Second, both changes in the distribution of education and in the relative earnings among educational groups have always been in phase with the alterations in the earnings distribution. Specifically, when the income profile effect related to education became steeper and the inequality of education increased, the earnings distribution worsened (as in the 1988-96 period). Third, changes in the relative earnings among educational groups are always the leading force behind changes in inequality.