Manufacturing real wages in Mexico

Antonia López Villa Vicencio () and Julio López Gallardo ()

Brazilian Journal of Political Economy, 2006, vol. 26, issue 3, 459-474

Abstract: In this paper we analyse the recent evolution and determinants of real wages in Mexico’s manufacturing sector, using theories based on the assumption of imperfect competition both in the product and in the labour markets, especially wage-bargain theory, insider-outsider and mark-up models. We show evidence that the Mexican labour market does not behave as a traditional competitive market. The proposed explanation for this fact is that some workers benefit from advantages when compared with others, so that they can get a greater share of the proceedings of the productive process. Also, we find that changes in the degree of competition in the market for output influence the behaviour of real wages. JEL Classification: E24, C51, J31.

Keywords: real wages; Mexico; macroeconomy and labor market; panel data; Generalized Method of Moments (search for similar items in EconPapers)
Date: 2006
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