Mexico's Minimum Wage Data: Trends, Policies, and a Research Agenda

Authors

Rafael Garduño Rivera Universidad de Navarra https://orcid.org/0000-0002-4501-265X
Neil Reid University of Toledo
Haoying Wang New Mexico Tech https://orcid.org/0000-0002-9171-7298

DOI:

https://doi.org/10.38191/iirr-jorr.24.050

Keywords:

Minimum Wage, Income Inequality, Policy Effectiveness, Trade Liberalization, Mexican Economy

Abstract

The decline of the real value of the minimum wage amid trade liberalization in Mexico has raised concerns about its policy eﬀectiveness and unintended consequences. The literature has examined the impact of minimum wage adjustments on employment levels, worker earnings, poverty, and inequality. However, ﬁndings from diﬀerent sample periods and regions still need to be reconciled. It is necessary to understand the mechanisms connecting minimum wage to other market components. This research note ﬁrst explores Mexico’s minimum wage data from 1980 to 2023 to grasp its spatial and temporal trends. We then discuss several future research directions to explore mechanisms through which minimum wage potentially works, including the welfare eﬀect of the policy, the informal sector, and interactions between diﬀerent policy tools.

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Published

2024-10-09

Issue

Publicaciones Online

Section

Artículos

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