Commentary
During our visit, we observed a democracy that has learned from its difficult past and is working toward an even more dynamic future.
Sarah Yerkes, Natalie Triche
{
"authors": [
"Eduardo Zepeda",
"David Fairris",
"Gurleen Popli"
],
"type": "legacyinthemedia",
"centerAffiliationAll": "",
"centers": [
"Carnegie Endowment for International Peace"
],
"collections": [],
"englishNewsletterAll": "",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie Endowment for International Peace",
"programAffiliation": "",
"programs": [],
"projects": [],
"regions": [
"North America",
"South America"
],
"topics": [
"Economy"
]
}
Source: Getty
In The Media
Minimum Wages and the Wage Structure in Mexico
Low minimum wages may be partially to blame for the growth of inequality in Mexico throughout the late 1980s and early 1990s. Minimum wages play an important role in wage-setting for low-income workers, including those in the informal sector. Government policies aiming to mitigate minimum wage’s negative impacts on employment may have pernicious consequences for income inequality.
Published on Jun 2, 2008
Instead of merely setting a lower bound on the wages of formal sector workers, minimum wages serve as a norm for wage setting more generally throughout the Mexican economy. Out results suggest that wages are commonly set at multiples of the minimum wage, and that changes in minimum wages influence wage changes across the occupational distribution. Moreover, our findings suggest that these normative features of minimum wages have their greatest impact on the mid-to-lower tail of the wage distribution, including the informal sector of the economy. Thus, the results lend support to the view that declining real minimum wages and stabilization programs that strengthen the link between wage levels, wage changes, and minimum wages, might account for a portion of the growing wage inequality in Mexico over the period of the late 1980s and early 1990s.
About the Authors
Eduardo Zepeda
Former Senior Associate, Trade, Equity and Development Program
Zepeda is inter-regional policy coordinator of the Development Policy and Analysis Division, Department of Economic and Social Affairs at the United Nations General Secretariat. He was previously a senior associate in the Trade, Equity, and Development Program at the Carnegie Endowment for International Peace.
David Fairris
University of California, Riverside
Gurleen Popli
University of Sheffield, UK
Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.
More Work from Carnegie Endowment for International Peace
- Senegal: An Island of Resilience
- In Russia, Private Companies Have Been Left to Pick Up the Tab for Ukrainian Drone AttacksCommentary
The cost of air defense has become an unregistered tax on revenue for businesses. While military rents are consolidated in the federal budget, the costs of defense are being spread across the balance sheets of companies and regional governments.
Alexandra Prokopenko
- California’s Global Trade Cities: Driving Local and National OutcomesPaper
Cities across the United States facilitate investment in American communities. Yet, because global attention remains focused on U.S. trade policy, their distinctive and bold local approaches to international trade and investment promotion are often underappreciated.
Wyatt Frank, Marissa Jordan
- “China Doesn’t Do Anything for Free”Commentary
Why the outcomes of the U.S.-China meetings may be limited.
Aaron David Miller, David Rennie
- Cities Have a Crucial Role to Play in Advancing Climate Mobility PrioritiesCommentary
Ensuring that cities’ perspectives shape international discussions at this year’s forums is not just equitable; it is likely to produce better outcomes.
Liliana Gamboa, Marissa Jordan
