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Investigación económica

Print version ISSN 0185-1667


HUESCA REYNOSO, Luis. Analysis of the Income Polarization of Homes in Mexico During the Period 1984-2000. Inv. Econ [online]. 2003, vol.62, n.246, pp.89-123. ISSN 0185-1667.

This paper presents an empirical application of the Esteban, et al. (1999) approach to polarization, in order to determine the deterioration in the middle class in Mexico for the 1984-2000 period. It is assumed that the formation of extreme groups and the clustering process in every society are determined by household income. Micro-data from the National Survey of Household Income and Expenditure (ENIGH) is used in sequence, to compute polarization indices according to disposable household income adjusted according to the OECD equivalence scale and inference is made through bootstrap techniques. Findings show that polarization increased during this period, dragging most of the middle income bracket down towards the lower levels, and a smaller proportion up towards the top. According to data supplied by the middle class themselves, their group has shrunk from about 40% of the population in 1984 to 34% in 2000.

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