Life-cycle hypothesis in Mexico: An analysis of income by gender

This paper analyzes the income profile of Mexican households. In order to do so, a semi-parametric model was estimated using gender of the head of the household. The results indicate that, due to the age effect, the income profile of households with a female head of household forms a flat, inverted U, in contrast to the proposition put forth by the life-cycle hypothesis. Conversely, income patterns of male-headed households were consistent with the form established in the hypothesis. Unlike its female counterpart, this profile was unaffected by family structure. This confirms that income is lower in female-headed households throughout the life cycle.