Luis Monroy-Gómez-Franco

Layers of Inequality: Unequal Opportunities and Skin Tone in Mexico. (with Roberto Vélez-Grajales and Gastón Yalonetzky) (Revise and Resubmit at the Review of Black Political Economy, Working Paper version available here)

We document the contribution of skin colour toward quantifying inequality of opportunity over a proxy indicator of wealth. Our Ferreira-Gignoux estimates of inequality of opportunity as a share of total wealth inequality show that once parental wealth is included as a circumstance variable, the share of inequality of opportunity rises above 40 per cent. By contrast, the contribution of skin tone to total inequality of opportunity remains minor.

The COVID-19 Pandemic and Female Employment. Evidence from Mexico (submitted)

In the present study, I use the Mexican Occupation and Employment Survey to analyse the short-run effects of the COVID-19 pandemic on the Mexican labour market, paying particular attention to its impact on female employment. Through excess ratios, I identify that women’s job losses were primarily driven by the losses in the hostelry and personal services sector (65\% of all-female job losses). I use a difference in differences estimator to identify heterogeneity in these job losses depending on the household composition. I identify that women who cohabit with a person with intensive care needs suffered a drop of four percentage points in the probability of employment and in the number of weekly hours worked due to the pandemic shock with respect the rest of women. Disaggregating this group, I identify that mothers of children between zero and 15 years old suffered a drop of four percentage points in their probability of employment than fathers of children in the same age group. However, mothers who cohabit with other women suffered a lower fall than those that do not cohabit with other women, being this difference of 2 percentage points. Women who cohabit with permanently disabled persons or with persons older than 65 also experienced a drop in their employment probability than men in the same situation.

A Land of Unequal Chances: Social Mobility Across Mexican Regions. (with Miles Corak) (Working Paper version available here )

Using a new data set, I estimate the patterns of social mobility in Mexico and its regions, contributing to the growing literature on regional social mobility patterns. I identify that although Mexico is a country with high levels of intergenerational rank persistence, thus low levels of social mobility, there is substantial variability across its regions. While 35 out of 100 individuals born in the bottom quintile of the household asset distribution and in the South of the country experience upward mobility, twice as large a proportion of those born in the bottom quintile but in Mexico City experience the same type of mobility. Controlling for multiple characteristics at the household and neighborhood levels, I find a penalization of 12 percentiles in terms of upward mobility against individuals born in the South, with respect the rest of the country, and a boost of 10 percentiles for those with origin in Mexico City.

Inequality Dynamics in Classical Capitalism: The Case of Mexico. (with Marco Ranaldi)

Recent studies have documented the rise in the capital share of income in Mexico over the last two decades (see Ibarra and Ros, 2019). However, very little attention has been paid on its impact to both the level and trends of income inequality in the country. This paper aims at filling this gap by studying the relationship between the functional and personal distribution of income in Mexico at both the national and sectorial level. To this end, this paper hinges on the work by Ranaldi (2019), which introduces a novel inequality concept, called income composition inequality, and an indicator for its measurement, the income-factor concentration index, to study the strength of the link between the functional and personal distribution of income. We show that the national level of income composition inequality in Mexico is double that of European countries, with an income-factor concentration index of 0.8 percent point (1 is the maximum). This shows that the Mexican economy can be still considered a “classical capitalism” (Milanovic, 2017), where income-rich and income-poor earn two separate sources of income, capital and labor income respectively.

The intersection of skin tones, geography and ethnic origins: Evidence from Mexico. (with Luis Guillermo Woo-Mora)

In the present paper we analyze how skin color and geographical location affect both the educational and the economical intergenerational mobility of the Mexican indigenous population. Previous literature has identified that persons inhabiting the south region of the country face lower rates of social mobility with respect to their peers from other regions of the country. In the same vein, the literature has identified that light skinned individuals experience larger social mobility rates than their dark skinned equivalents. However, the literature has failed to analyze how both dimensions of stratification affect the Mexican indigenous population, being this gap the one we seek to fill. For our analysis, we employ the 2017 ESRU Survey of Social Mobility in Mexico (ESRU-EMOVI 2017), which allows us to analyze social mobility patterns (both economic and educational) at the regional scale in Mexico. Our results suggest that the effects of skin tone stratification observed for the Mexican population at large are not present when we focus on analyzing only the Mexican indigenous population. However, the effects of geography are also observed for this population, where the indigenous people living in the south region of the country face lower mobility rates in both economic and educational dimensions compared with their peers from the rest of the country.

The Education Premium in Globalized Sectors: Evidence from Mexico (with Ingrid Bleynat)

Economic Inequality meets Social Stratification: An Analytical Framework with an Application to Mexico" (with Paloma Villagómez-Ornelas)

For the last 20 years, stratification studies have proliferated, motivated by the analysis of wealth inequality. The dominant economic perspective suggests that variability in individual development paths derives from human capital and work interaction. However, evidence from social stratification studies highlights structural factors such as gender, race and class adscription, as mediators between economic development and individual performance. This is, economic relations and structures act differently upon a population already segmented by social categories previously ordered and hierarchized by social stratification. Thus, economic inequality stems from the economic structure and accumulation pattern of a country, and its interaction with structural processes that enhance the reproduction of disadvantages for specific social groups. We argue that both elements, economic and social stratification must be considered simultaneously in any comprehensive explanation of economic inequality. To show how we provide a theoretical description of how both sets of elements interplay in the Mexican context. We then use this theoretical framework to parse the abundant empirical evidence produced for Mexico, showing how what seems like disconnected pieces of evidence can be put together to provide a cogent explanation of how inequality is created and sustained in Mexico.