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Downward wage rigidities in the Mexican labor market: 1996–2011

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  • Juarez, Laura
  • de la Cabada, Daniel Casarin

Abstract

In this paper, we provide evidence of the existence and evolution of downward real and nominal wage rigidities in Mexico in the period 1996–2011, which was characterized by a reduction in the level and volatility of inflation. Our results suggest that, throughout the period, a much larger fraction of private sector workers, who stay in the same job from one year to another, are subject to downward real wage rigidities than to nominal ones. Nevertheless, the relative prevalence of nominal rigidities increases slightly as inflation decreases.

Suggested Citation

  • Juarez, Laura & de la Cabada, Daniel Casarin, 2018. "Downward wage rigidities in the Mexican labor market: 1996–2011," LSE Research Online Documents on Economics 123358, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:123358
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    3. Brugués, Felipe & Kikkawa, Ayumu Ken & Mei, Yuan & Robles, Pablo, 2025. "The impact of NAFTA on prices and competition: Evidence from Mexican manufacturing plants," Journal of International Economics, Elsevier, vol. 155(C).

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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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