Minimum Wages and Earnings Inequality in Urban Mexico

33 Pages Posted: 19 Jul 2010

See all articles by Mariano Bosch

Mariano Bosch

London School of Economics & Political Science (LSE)

Marco Manacorda

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); Queen Mary, University of London; Centre for Economic Policy Research (CEPR)

Date Written: June 2010

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.

Keywords: Mexico, Minimum Wage, Wage Inequality

JEL Classification: J31, J38, O15, O17, O24

Suggested Citation

Bosch, Mariano and Manacorda, Marco, Minimum Wages and Earnings Inequality in Urban Mexico (June 2010). CEPR Discussion Paper No. DP7882. Available at SSRN: https://ssrn.com/abstract=1640404

Mariano Bosch (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Marco Manacorda

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Queen Mary, University of London

Mile End Road
London, London E1 4NS
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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