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Wage Equations with Unreported Earnings: A Methodological Reassessment for the Case of Mexico

Author

Listed:
  • Javier Emmanuel Anguiano Pita

    (Secretaria de Ciencia, Humanidades, Tecnologia e Innovacion (SECIHTI))

Abstract

This article analyzes the effects of economic growth, trade openness, foreign direct investment (FDI), and energy consumption on CO2 emissions in Canada, the United States, and Mexico. The study employs autoregressive distributed lag (ARDL) models and Granger causality tests, using annual time series data for the period 1970-2023. The main findings indicate that: 1) energy consumption is positively associated with CO2 emissions in all three countries; 2) the Environmental Kuznets Curve (EKC) hypothesis is validated only for Canada; 3) FDI inflows contribute to higher emissions in Canada and Mexico; 4) trade openness contributes to reducing emissions only in Mexico; and, 5) causality analysis reveals that the link between economic activities and emissions differs according to each country’s productive structure. These results underscore the need to design country-specific policies aimed at promoting sustainable growth and development in North America.

Suggested Citation

  • Javier Emmanuel Anguiano Pita, 2026. "Wage Equations with Unreported Earnings: A Methodological Reassessment for the Case of Mexico," Sobre México. Revista de Economía, Sobre México. Temas en economía, vol. 1(13), pages 67-102.
    • Handle: RePEc:smx:journl:13:67:102
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    File URL: https://sobremexico-revista.ibero.mx/index.php/Revista_Sobre_Mexico/article/view/192
    File Function: First version, 2026
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    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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