Wage inequality and economic growth in Mexican regions

Only a few studies have analysed the relationship between intraregional inequality and growth, although several studies have measured inequality at the regional level. The objective of this paper is to analyse the relationship between income (wage) inequality and economic growth in different regions...

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Bibliographic Details
Main Authors: Claudia Tello, Raúl Ramos
Format: Article
Language:English
Published: AECR 2012-01-01
Series:Investigaciones Regionales - Journal of Regional Research
Subjects:
Online Access:http://www.aecr.org/images/ImatgesArticles/2012/12/6_Claudia_Tello,_Raúl_Ramos.pdf
Description
Summary:Only a few studies have analysed the relationship between intraregional inequality and growth, although several studies have measured inequality at the regional level. The objective of this paper is to analyse the relationship between income (wage) inequality and economic growth in different regions of Mexico. We also try to identify factors that explain the variation of intra-regional inequality across Mexican regions and over time. Using macroeconomic databases and publicly available microdata, we apply techniques used in the fields of statistics and econometrics to obtain robust evidence on the relationship between growth and inequality. Our aim is to provide policy recommendations to support the design and implementation of growth-promoting measures thatavoid the exclusion of certain social groups. This paper provides reasons to use a spatial approach and an analysis of particular regions to avoid «one size fits all» policy recommendations.
ISSN:1695-7253