Abstract

CASTRO LUGO, David  and  MORALES SANDOVAL, Berenice. Changes In Regional Wage Inequality in Mexico, 1994-2003. Frontera norte [online]. 2011, vol.23, n.45, pp. 35-65. ISSN 0187-7372.

The aim of this paper is to analyze regional wage inequality in Mexico (1994-2003) by identifying the most important factors. The analysis is based on the "second moment" methodology proposed by Blau and Kahn (1996) and adapted by Monastiriotis (2003). The results suggest both a decrease in the total gap after 1995 and a tendency towards the homogenization of remuneration for labor within the regions, while the difference between them increases, due to aspects related to factor endowments, their prices and unobserved factors specific to the region.

Keywords : Labor market; regional wage inequality; Theil index; regional wage decomposition; Mexico.