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Minimum Wages and Earnings Inequality in Urban Mexico

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  • Bosch, Mariano
  • Manacorda, Marco

Abstract

This paper analyzes the contribution of the minimum wage to the well documented rise in earnings inequality in Mexico between the late 1980s and the early 2000s. We find that a substantial part of the growth in inequality, and essentially all the growth in inequality in the bottom end, is due to the steep decline in the real value of the minimum wage.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7882.

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Date of creation: Jun 2010
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Handle: RePEc:cpr:ceprdp:7882

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Keywords: Mexico; Minimum Wage; Wage Inequality;

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  8. Gordon H. Hanson & Ann Harrison, 1999. "Trade liberalization and wage inequality in Mexico," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(2), pages 271-288, January.
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