The Evolution of Inequality in Mexico: 1895-1940

Abstract: The evolution of inequality in Latin America, particularly in Mexico, is a topic of growing interest among economists, economic historians and policy makers. For the Mexican case, this study empirically estimates, for the first time, the evolution of Mexican inequality before 1950. This thesis produces a new database and employs it to construct social tables for four benchmark years, 1895,1910,1930 and 1940. The evidence points to inequality being a political phenomenon; inequality levels change as policies change. Over the long run, the evolution of inequality displays a strong persistence. The results are in line with a new branch of the literature that identifies the importance of land ownership for inequality dynamics. The study of the evolution of inequality in this period contributes to derive valuable lessons from developing countries with large agrarian populations and challenge some of the dominant theories of inequality.