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Income Inequality in Central America, Dominican Republic and Mexico

Assessing the Importance of Individual and Household Characteristics

  • Author: UN, ECLAC
  • Publication date: July 2006
  • Page count: 88
  • Language(s) in this book: English
  • Sales number: 06.II.G.7

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About the product

This study investigates the relationship between individual and household characteristics and income inequality in Central America, the Dominican Republic and Mexico from 1990 to 2002. A Theil decomposition exercise of individual and household income inequality is used to determine factors important for the level of inequality. In addition, the use of a novel semi-parametric simulation methodology from DiNardo, Fortin and Lemieux, provides counterfactual income distributions of individuals and households to assess the importance of changes in their demographic, education and labour market characteristics over time.