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Mexico's minimum wage data: Trends, policies, and a research agenda

Author

Listed:
  • Garduño-Rivera, Rafael

    (Universidad de Navarra)

  • Reid, Neil

    (University of Toledo)

  • Wang, Haoying

    (New Mexico Tech)

Abstract

The decline of the real value of the minimum wage amid trade liberalization in Mexico has raised concerns about its policy effectiveness and unintended consequences. The literature has examined the impact of minimum wage adjustments on employment levels, worker earnings, poverty, and inequality. However, findings from different sample periods and regions still need to be reconciled. It is necessary to understand the mechanisms connecting minimum wage to other market components. This research note first explores Mexico’s minimum wage data from 1980 to 2023 to grasp its spatial and temporal trends. We then discuss several future research directions to explore mechanisms through which minimum wage potentially works, including the welfare effect of the policy, the informal sector, and interactions between different policy tools.

Suggested Citation

  • Garduño-Rivera, Rafael & Reid, Neil & Wang, Haoying, 2025. "Mexico's minimum wage data: Trends, policies, and a research agenda," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 62, pages 27-35.
    • Handle: RePEc:ris:invreg:0564
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    More about this item

    Keywords

    Minimum wage; income inequality; policy effectiveness; trade liberalization; Mexican Economy.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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