• Research
  • Emissary
  • About
  • Experts
Carnegie Global logoCarnegie lettermark logo
DemocracyIran
  • Donate
{
  "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.

Link Copied
By Eduardo Zepeda, David Fairris, Gurleen Popli
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

Authors

Eduardo Zepeda
Former Senior Associate, Trade, Equity and Development Program
Eduardo Zepeda
David Fairris
University of California, Riverside
Gurleen Popli
University of Sheffield, UK
EconomyNorth AmericaSouth America

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

  • Article
    From Labor Scarcity to AI Society: Governing Productivity in East Asia

    The debate over AI and work too often centers on displacement. Facing aging populations and shrinking workforces, East Asian policymakers view AI not as a threat, but as a cross-sectoral workforce strategy.

      Darcie Draudt-Véjares, Sophie Zhuang

  • Article
    Governing AI in the Shadow of Giants: Korea’s Strategic Response to Great Power AI Competition

    In its version of an AI middle power strategy, Seoul is pursuing alignment with the United States not as an endpoint but as a strategy to build industrial and geopolitical leverage. Whether this balance holds remains an open question.

      Darcie Draudt-Véjares, Seungjoo Lee

  • China Financial Markets
    Commentary
    China Financial Markets
    Is China’s High-Quality Investment Output Economically Viable?

    China’s rapid technological progress and its first-rate infrastructure are often cited as refuting the claim that China has been systematically overinvesting in non-productive projects for many years. In fact, as the logic of overinvestment and the many historical precedents show, the former is all-too-often consistent with the latter.

      Michael Pettis

  • Article
    India’s Press Note 3 Gamble: Opening the FDI Door to China

    On March 10, 2026, India’s Union Cabinet approved amendments to Press Note 3, a regulation that mandated government approval on all foreign direct investment (FDI) from countries sharing a land border with India. This amendment raises questions primarily about whether its stated benefits will materialize and if the risks have been adequately weighed. This piece will address the same.

      Konark Bhandari

  • Humanoid robots follow technicians to learn job skills at the data collection area of an embodied AI robot innovation center on September 14, 2025 in Shaoxing, Zhejiang Province of China.
    Paper
    The AI Labor Debate: Three Views on the Future of Work

    AI could hollow out jobs, reshape them gradually, create entirely new ones—or do all three at once. The case for starting to act now doesn’t depend on knowing which.

      • Teddy Tawil

      Teddy Tawil

Get more news and analysis from
Carnegie Endowment for International Peace
Carnegie global logo, stacked
1779 Massachusetts Avenue NWWashington, DC, 20036-2103Phone: 202 483 7600
  • Research
  • Emissary
  • About
  • Experts
  • Donate
  • Programs
  • Events
  • Blogs
  • Podcasts
  • Contact
  • Annual Reports
  • Careers
  • Privacy
  • For Media
  • Government Resources
Get more news and analysis from
Carnegie Endowment for International Peace
© 2026 Carnegie Endowment for International Peace. All rights reserved.