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The Microeconomics of Inequality, Poverty and Market Liberalizing Reforms

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  • Rafael E. de Hoyos

Abstract

This paper illustrates how the use of microeconometric techniques can be used to uncover the micro dynamics behind macro shocks. Using Mexican micro data we find out that—controlling for everything else—between 1994 and 1998 returns to personal characteristics in the tradable sector increased particularly those of skilled labourers. By the year 2000 the positive shock upon the tradable sector vanishes with returns to personal characteristics converging to the levels observed in the non-tradable sector.

Suggested Citation

  • Rafael E. de Hoyos, 2005. "The Microeconomics of Inequality, Poverty and Market Liberalizing Reforms," WIDER Working Paper Series RP2005-63, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2005-63
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2005-63.pdf
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    1. repec:unu:wpaper:wp2012-03 is not listed on IDEAS
    2. Maurizio Bussolo & Rafael E. De Hoyos, 2009. "Gender Aspects of the Trade and Poverty Nexus : A Macro-Micro Approach," World Bank Publications - Books, The World Bank Group, number 13264.
    3. Rafael De Hoyos, 2012. "Accounting for Mexican Income Inequality During the 1990s," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 103-125, November.
    4. De Hoyos, Rafael E. & Iacovone, Leonardo, 2013. "Economic Performance under NAFTA: A Firm-Level Analysis of the Trade-productivity Linkages," World Development, Elsevier, vol. 44(C), pages 180-193.
    5. Miguel Szekely & Claudia Sámano, 2012. "Did Trade Openness Affect Income Distribution in Latin America? Evidence for the Years 1980-2010," WIDER Working Paper Series wp-2012-003, World Institute for Development Economic Research (UNU-WIDER).
    6. Sámano, Claudia & Szekely, Miguel, 2012. "Did Trade Openness Affect Income Distribution in Latin America? Evidence for the Years 1980-2010," WIDER Working Paper Series 003, World Institute for Development Economic Research (UNU-WIDER).
    7. De Hoyos, R.E., 2006. "Structural Modelling of Female Labour Participation and Occupation Decisions," Cambridge Working Papers in Economics 0611, Faculty of Economics, University of Cambridge.
    8. Miguel Székely & Pamela Mendoza, 2017. "Declining inequality in Latin America: structural shift or temporary phenomenon?," Oxford Development Studies, Taylor & Francis Journals, vol. 45(2), pages 204-221, April.

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