Income distribution in Mexico's Northern border states

Abstract

A high degree of income inequality has been a persistent and troubling feature of the Mexican economy, but the degree of inequality is far from uniform in different regions of Mexico. Given the growth of the maquiladora industry and proximity to the United States, it is reasonable to anticipate that Mexico's northern border states exhibit a different pattern of inequality than other regions in Mexico. Using data from the 1992, 1994, 1996, 1998 and 2000 surveys of income and expenditures (Encuesta Nacional de Ingresos y Gastos de los Hogares) conducted by INEGI (Instituto Nacional de Estadística, Geografía e Informática), this paper addresses two fundamental questions. First, is the pattern of income distribution in Mexico's northern border states different from that found in other regions of Mexico? Second, has the pattern of income distribution in the border states been changing or has it been relatively stable during the 1992-2000 time period?

Notes

Peach is Regents Professor in the Department of Economics and International Business at New Mexico State University and Molina is Associate Professor in the Department of Economics at the University of North Texas.