Effect on employment of minimum wages in Mexico
Abstract Minimum wage (MW) increases do not have a significant impact on employment in Mexico. There is little evidence of jobs moving up in the wage distribution after MW raises. There is some reshuffling of jobs above MW, and substantial correlation of MW changes with characteristics of the population, putting in evidence that the policy may be endogenous. MW are set federally; thus, most of the variability in interventions comes in the form of changes over time and changes in regional coverage that are also defined federally. On the other hand, the social and economic conditions vary across municipalities, and the local labor markets respond differently to the same federal regulation.
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| Main Author: | |
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| Format: | Digital revista |
| Language: | English |
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Universidad Autónoma Metropolitana, Unidad Azcapotzalco, División de Ciencias Sociales y Humanidades
2020
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| Online Access: | http://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S2448-66552020000200009 |
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| Summary: | Abstract Minimum wage (MW) increases do not have a significant impact on employment in Mexico. There is little evidence of jobs moving up in the wage distribution after MW raises. There is some reshuffling of jobs above MW, and substantial correlation of MW changes with characteristics of the population, putting in evidence that the policy may be endogenous. MW are set federally; thus, most of the variability in interventions comes in the form of changes over time and changes in regional coverage that are also defined federally. On the other hand, the social and economic conditions vary across municipalities, and the local labor markets respond differently to the same federal regulation. |
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