Determinants of the mobility of low-wage workers in Mexico

Juan Francisco Suarez Martinez, Sebastian Aguirre Ruiz, Eugenio Mauricio Chavez Ruiz, Alejandro Severo Lugo Ortiz and Victoria Elena Ramirez Montemayor
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Juan Francisco Suarez Martinez: University of Monterrey
Sebastian Aguirre Ruiz: University of Monterrey
Eugenio Mauricio Chavez Ruiz: University of Monterrey
Alejandro Severo Lugo Ortiz: University of Monterrey
Victoria Elena Ramirez Montemayor: University of Monterrey

Sobre México. Revista de Economía, 2026, vol. 1, issue 13, 141-170

Abstract: This study aims to identify the factors that influence whether workers exit or remain in low-wage employment in Mexico. Utilizing data from the National Occupation and Employment Survey (ENOE) for the period from 2012 to 2019, we track individuals initially employed in low-wage jobs and monitor their labor market status one year later. A multinomial logit model is employed to calculate average marginal effects on three potential trajectories: unemployment/inactivity, continued low-wage employment, or upward wage mobility. The results indicate that education and formal employment enhance the likelihood of upward mobility, while being female, older, and employed in sectors such as agriculture and services contribute to the persistence of low wages. These findings suggest that wage mobility is influenced not only by individual characteristics but also by structural factors within the labor market, highlighting important implications for public policy.

JEL-codes: J21 J31 J62 O15 (search for similar items in EconPapers)
Date: 2026
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