Abstract
This article examines the spatial distribution of income and education inequalities and their association in Mexico, focusing on the municipal level. We rely on a small area estimation methodology to construct measures of income inequality that are representative at the municipal level. We also construct variables accounting for education inequality. Based on these variables and on an exploratory spatial analysis, we emphasize a negative association between income and education inequalities, particularly salient among the poor and ethnically diverse municipalities from the southern states such as Oaxaca. Moreover, results from spatial econometrics analyses reveal the existence a U-inverted association between these two types of inequalities. Our results are discussed in relation to education returns, employment opportunities and migration.
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