You always see these figures made out of papier maché or terra cotta and I believe they are called catarinas. Can anybody explain to me why they are called like that and what their origin is. Thanks.

My guess is that you are talking about La Catrina (the death).
http://www.lacatrinaquartet.com/what_is_la_catrina.htm

Source for quote
"La Catrina
La Calavera Catrina (the skeleton of the fashionable lady) is the creation of José Guadalupe Posada (1852-1913). Posada was a Mexican engraver known for his illustrations of newspapers during the times of dictator Porfirio Diaz. Originally he created La Catrina to illustrate the popular song "La cucaracha". Later he used this image to parody overdressed Mexican ladies that at the time had an obsession for everything French. "
Marti in Mexico