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Gaining Ground: Minimum Wage and Gender Wage Gap in Mexico, 2015–2025

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  • Kato-Vidal, Enrique

Abstract

This study examines the impact of the doubling of the real minimum wage in Mexico (2015–2025) on the gender wage gap. While labor market discrimination remains pervasive, the causal drivers of gap reduction are under-researched. Utilizing data from INEGI’s Employment Survey (ENOE) and OLS regression analysis, this research segments the labor market by wage level, contract type, and job position to identify heterogeneous effects. The findings provide strong evidence for the lighthouse effect, demonstrating that minimum wage hikes serve as a bottom-up equalizer. The gender gap in the low-wage bracket plummeted from 9% to 0%, with significant reductions also observed among temporary and non-contractual workers. This suggests the minimum wage functions as a powerful social benchmark beyond the regulated sector. However, the policy proved less effective in middle- and high-income clerical and managerial roles. The study concludes that while aggressive minimum wage policies effectively mitigate the sticky floor, targeted sector-specific interventions remain necessary to achieve full gender pay equity.

Suggested Citation

  • Kato-Vidal, Enrique, 2026. "Gaining Ground: Minimum Wage and Gender Wage Gap in Mexico, 2015–2025," SocArXiv kmtfc_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:kmtfc_v1
    DOI: 10.31219/osf.io/kmtfc_v1
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    References listed on IDEAS

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    1. Campos Vázquez, Raymundo Miguel & Rodas Milián, James Alexis, 2020. "El efecto faro del salario mínimo en la estructura salarial: evidencias para México," El Trimestre Económico, Fondo de Cultura Económica, vol. 87(345), pages 51-97, enero-mar.
    2. Paul Carrillo & Néstor Gandelman & Virginia Robano, 2014. "Sticky floors and glass ceilings in Latin America," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 339-361, September.
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