Income inequality in Mexico, 1895-1940: industrialisation, revolution, institutions

Summary, in English

This paper, building on new archival research and the social table method, presents comprehensive estimates of income inequality in Mexico in 1895, 1910, 1930 and 1940. Inequality grew from 1895 to 1910, driven by economic expansion within the context of an oligarchic economy. While real income increased for the lower classes during this period, the main beneficiaries were large landowners and entrepreneurs. In the revolutionary period from 1910 to 1930 inequality decreased especially as a result of land reforms, benefitting peasants at the expense of the large landowners. However, the economic structure of the country was not fundamentally changed, and in the 1930s inequality raised as incomes of peasants and those in the informal sector fell behind manufacturing and other high-earning sectors. The Mexican case shows the complex interaction of economics, demography and politics in determining economic inequality.

• Author: Diego Castañeda Garza; Erik Bengtsson
• Department/s: Department of Economic History; Growth, technological change, and inequality
• Publishing year: 2024
• Language: English
• Pages: 415-434
• Publication/Series: Revista de Historia Economica - Journal of Iberian and Latin American Economic History
• Volume: 42
• Issue: 3
• Links: http://dx.doi.org/10.1017/S021261092400017X
• Document type: Journal article
• Publisher: Cambridge University Press
• Topic: Economic History; History
• Keywords: income inequality; income distribution; Mexico; Mexican Revolution; D31; E01; N36; O15
• Status: Published
• ISBN/ISSN/Other: ISSN: 0212-6109