In 1990 Mexico has what seems to be unusual earned income: the mean income after dropping those with unknown incomes and marking those not in universe with an income of zero is 208,799.8 per month in contrast to a GDP per Capita in 1990 Mexican Pesos of 8753.56 according to the World Bank’s World Development Indicators. Correcting for the new peso results in the mean undershooting GDP per Capita in 1990. Is it unreasonable to assume these should be similar? If so why?
A couple details should be considered. First, the earned income figures from the Mexican Census (via INCEAR) are monthly figures and the World Bank’s development indicators report annual GDP per capita. After correcting for the “new” Peso you will also want to annualize your calculation of monthly earned income. Second, the GDP figures are estimated by adding up the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. This estimate of “value added” may not be fully captured in people’s reported wages/income.