Intergenerational paid and unpaid labor production and consumption inequality by gender in Mexico

Prior research on inequality in Mexico has largely centered on income, education, and job status, overlooking the compound impact on gender and generational disparities. This oversight limits our understanding of social mobility dynamics and prospects. This study contributes to this body of research by analyzing labor income and consumption inequalities between 1994 and 2014, incorporating unpaid care and household production from 2014, using National Transfer Accounts frameworks. The study reveals five main findings. First, an increase in the number of households with secondary education might not be enough to significantly reduce inequality, as the proportion of households with tertiary education remained unchanged between 1994 and 2014. Second, progress in reducing labor income and consumption inequality among educational groups stagnated or reversed by 2014. Third, substantial differences exist in labor income and consumption across socioeconomic groups, with men consistently earning more than women. Fourth, unpaid household production varies across educational groups, with women in the most educated group dedicating the least time to these activities, while men in this group contribute more than other groups. Lastly, unpaid care and household production plays a significant role for women, and if they were compensated, it could considerably equalize labor income across genders and socioeconomic groups. This paper emphasizes the critical role of education and the equitable valuation of paid and unpaid work in reducing economic disparities in Mexico across genders and throughout the economic life cycle. To address disparities, the study stresses the importance of expanding education and aligning labor markets accordingly.