Minimum Wages and Earnings Inequality in Urban Mexico
33 Pages Posted: 19 Jul 2010
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: Suggested Citation
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Minimum Wages and Earnings Inequality in Urban Mexico
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