Macroeconomic Performance and Manufacturing Earnings Disparity in Mexico

Kellin Stanfield

Journal of Economic Issues, 2010, vol. 44, issue 2, 523-532

Abstract: Under the neoliberal policy, Mexico has suffered weak economic growth, increased macroeconomic instability, and rising disparity. In the UTIP macro-model of pay, intra-sectoral pay disparity results from institutional settings. Inter-sectoral disparity drives overall pay disparity, is explained by differing degrees of monopoly power, and evolves according to the struggle for such power. Since sectors with greater monopoly power are better suited to weather negative conditions, pay disparity rises under adverse macroeconomic conditions. Poor Mexican macroeconomic performance is associated with increased industrial pay disparity and sectors that have been able to insulate themselves from external competition have been relative winners

Date: 2010
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DOI: 10.2753/JEI0021-3624440225

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