Gaining Ground: Minimum Wage and Gender Wage Gap in Mexico, 2015–2025

Enrique Kato-Vidal

No kmtfc_v1, SocArXiv from Center for Open Science

Abstract: This study examines the impact of the doubling of the real minimum wage in Mexico (2015–2025) on the gender wage gap. While labor market discrimination remains pervasive, the causal drivers of gap reduction are under-researched. Utilizing data from INEGI’s Employment Survey (ENOE) and OLS regression analysis, this research segments the labor market by wage level, contract type, and job position to identify heterogeneous effects. The findings provide strong evidence for the lighthouse effect, demonstrating that minimum wage hikes serve as a bottom-up equalizer. The gender gap in the low-wage bracket plummeted from 9% to 0%, with significant reductions also observed among temporary and non-contractual workers. This suggests the minimum wage functions as a powerful social benchmark beyond the regulated sector. However, the policy proved less effective in middle- and high-income clerical and managerial roles. The study concludes that while aggressive minimum wage policies effectively mitigate the sticky floor, targeted sector-specific interventions remain necessary to achieve full gender pay equity.

Date: 2026-04-23
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:kmtfc_v1

DOI: 10.31219/osf.io/kmtfc_v1

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