Rising Wage Inequality in Mexico: Structural Reforms or Changing Labor Market Institutions?

Gurleen Popli

No 2005016, Working Papers from The University of Sheffield, Department of Economics

Abstract: Over the period of the mid-1980s to the mid-1990s Mexico experienced a significant increase in wage inequality. The literature has typically attributed this rise in inequality to trade liberalization and foreign direct investment. We argue, however, that a better explanation can be found in the changing labor market institutions such as declining union power and the declining real value of the minimum wage. We offer evidence to suggest that these domestic institutional changes have indeed contributed to growing wage inequality, and show that the timing of these institutional changes better matches the trajectory of wage inequality in Mexico than does the timing of reforms.

Keywords: Wage inequality; Structural reforms; Labor Market Institutions; Mexico. (search for similar items in EconPapers)
JEL-codes: J31 J50 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2005-11, Revised 2005-11
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005016.pdf First version, 2005 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005016.pdf [301 Moved Permanently]--> https://www.sheffield.ac.uk/content/1/c6/03/91/72/SERP2005016.pdf)
http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005016.pdf Revised version, 2005 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.shef.ac.uk/content/1/c6/03/91/72/SERP2005016.pdf [301 Moved Permanently]--> https://www.sheffield.ac.uk/content/1/c6/03/91/72/SERP2005016.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:shf:wpaper:2005016

Access Statistics for this paper

More papers in Working Papers from The University of Sheffield, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Mike Crabtree ().