Cravino and Levchenko (2017) establish that the 1994 Mexican peso devaluation raised the prices of consumption baskets of low-income households substantially more than the prices of the consumption baskets of high-income households. In this paper, we explore this result further by focusing on the regional variation in how much prices of consumption baskets changed following the devaluation. Our main finding is that the devaluation was anti-poor in all regions, but there is substantial regional dispersion in the relative inflation faced by the poor.
Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis