Estimation of Municipal Income Distribution in Mexico

Purpose: To ffer an estimation of income distribution measures for municipalities in Mexico for year 2015, and also an analysis of municipal grants on income inequality. Methodological design: We constructed Gini and Atkinson indexes using microdata from the Mexican inter-census survey 2015. We us...

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Main Authors: Mario Miguel Ojeda Ramírez, Roberto Gallardo Del Ángel, Cecilia Cruz López
Format: Article
Language:English
Published: Universidad Nacional Autónoma de México 2021-01-01
Series:Entreciencias: Diálogos en la Sociedad del Conocimiento
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Online Access:https://www.revistas.unam.mx/index.php/entreciencias/article/view/77338
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author Mario Miguel Ojeda Ramírez
Roberto Gallardo Del Ángel
Cecilia Cruz López
author_facet Mario Miguel Ojeda Ramírez
Roberto Gallardo Del Ángel
Cecilia Cruz López
author_sort Mario Miguel Ojeda Ramírez
collection DOAJ
description Purpose: To ffer an estimation of income distribution measures for municipalities in Mexico for year 2015, and also an analysis of municipal grants on income inequality. Methodological design: We constructed Gini and Atkinson indexes using microdata from the Mexican inter-census survey 2015. We use these inequality indexes along with other several features of poverty and marginality to perform cluster analysis and classify municipalities. From our cluster analysis, we classified the municipalities in four groups: low, medium-low, medium-high and high-income inequality. Afterwards, we performed weighted least squares regressions to observe the effect of fiscal variables on inequality in each group. Results: Although the objective of federal grants has been poverty instead of inequality, we offer evidence that income inequality is inversely affected by the design of federal grants. The regression analysis shows that conditional grants designed to reduce poverty might be increasing inequality, while unconditional grants may help to reduce income inequality even though this is not their policy objective. Research limitations: The main limitation might be the lack of local statistics for other years to perform a dynamic analysis. Findings: The overall effect of conditional grants on income distribution is small but still positive, showing that conditional grants do not reduce income inequality. The estimates show that the total effect is for lower income inequality, especially in those municipalities with high and very high inequality.
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spelling doaj-art-aaa8e6bfd8804706a6a8794787d42fd72025-08-20T03:18:53ZengUniversidad Nacional Autónoma de MéxicoEntreciencias: Diálogos en la Sociedad del Conocimiento2007-80642021-01-0192310.22201/enesl.20078064e.2021.23.77338Estimation of Municipal Income Distribution in MexicoMario Miguel Ojeda Ramírez0Roberto Gallardo Del Ángel1Cecilia Cruz López2Universidad VeracruzanaUniversidad VeracruzanaUniversidad Veracruzana Purpose: To ffer an estimation of income distribution measures for municipalities in Mexico for year 2015, and also an analysis of municipal grants on income inequality. Methodological design: We constructed Gini and Atkinson indexes using microdata from the Mexican inter-census survey 2015. We use these inequality indexes along with other several features of poverty and marginality to perform cluster analysis and classify municipalities. From our cluster analysis, we classified the municipalities in four groups: low, medium-low, medium-high and high-income inequality. Afterwards, we performed weighted least squares regressions to observe the effect of fiscal variables on inequality in each group. Results: Although the objective of federal grants has been poverty instead of inequality, we offer evidence that income inequality is inversely affected by the design of federal grants. The regression analysis shows that conditional grants designed to reduce poverty might be increasing inequality, while unconditional grants may help to reduce income inequality even though this is not their policy objective. Research limitations: The main limitation might be the lack of local statistics for other years to perform a dynamic analysis. Findings: The overall effect of conditional grants on income distribution is small but still positive, showing that conditional grants do not reduce income inequality. The estimates show that the total effect is for lower income inequality, especially in those municipalities with high and very high inequality. https://www.revistas.unam.mx/index.php/entreciencias/article/view/77338Gini indexAtkinson indexcluster analysisregressions analysis.
spellingShingle Mario Miguel Ojeda Ramírez
Roberto Gallardo Del Ángel
Cecilia Cruz López
Estimation of Municipal Income Distribution in Mexico
Entreciencias: Diálogos en la Sociedad del Conocimiento
Gini index
Atkinson index
cluster analysis
regressions analysis.
title Estimation of Municipal Income Distribution in Mexico
title_full Estimation of Municipal Income Distribution in Mexico
title_fullStr Estimation of Municipal Income Distribution in Mexico
title_full_unstemmed Estimation of Municipal Income Distribution in Mexico
title_short Estimation of Municipal Income Distribution in Mexico
title_sort estimation of municipal income distribution in mexico
topic Gini index
Atkinson index
cluster analysis
regressions analysis.
url https://www.revistas.unam.mx/index.php/entreciencias/article/view/77338
work_keys_str_mv AT mariomiguelojedaramirez estimationofmunicipalincomedistributioninmexico
AT robertogallardodelangel estimationofmunicipalincomedistributioninmexico
AT ceciliacruzlopez estimationofmunicipalincomedistributioninmexico