Aggregate demand and regional inequality by gender in Mexico

Abstract

A structural decomposition technique is proposed in order to break down the labor income of men and women in four regions of Mexico, and is linked to a final demand expansion, into three effects: national, regional and technological. The results suggest that labor income multipliers for women are relatively high in services. Government consumption tends to benefit the income of women more, whereas the expansion in investment tends to favor the income of men more. Regional gender equality indices are not sensitive to expansions in the final demand.