The effect of doubling the minimum wage on employment and earnings in Mexico

Raymundo Campos-Vazquez and Gerardo Esquivel ()

Economics Letters, 2021, vol. 209, issue C

Abstract: In January 2019, Mexico doubled the minimum wage in municipalities that share a border with the United States. We use the universe of workers that were formally employed in the Mexican private sector in the third quarter of 2018 (19.6 million) and track their labor history from 2015Q1 through 2021Q1. Using a synthetic control approach, we find no significant effect on employment and a positive and significant impact on earnings, especially at the bottom of the wage distribution.

Keywords: Employment; Minimum wage; Mexico (search for similar items in EconPapers)
JEL-codes: J20 J30 O54 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:209:y:2021:i:c:s0165176521004018

DOI: 10.1016/j.econlet.2021.110124

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