Abstract
This paper explains the behavior of wage inequality in Mexico and the corresponding region along the northern border in the time period 2005-2012. We use a traditional and easy-to-interpret coefficient, the Gini index, which is accurately decomposed using a cooperative game approach, to obtain the causes behind its gradual decline, as the index fell from 0.435 to 0.400 by 2012. The results show that it is within groups – by 70% – that the wage gap has been reduced by type of task in the job position for the border region and by skills for the country.
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