Unions and Wage Inequality in Mexico

Posted: 16 Apr 2003

See all articles by David Fairris

David Fairris

University of California, Riverside (UCR) - Department of Economics


This paper offers empirical evidence on the impact of trade unions on wage inequality in Mexico. The results indicate that unions were a strongly equalizing force affecting the dispersion of wages in 1984, but were only half as effective at reducing wage inequality in 1996. Not only did the unionized percentage of the labor force fall considerably over the period, unions also lost some of their ability to reduce wage dispersion among the workers they continued to represent. Had unions maintained in 1996 the same structural power they possessed in 1984, the rise in wage inequality in the formal sector of the labor market between those years would have been reduced by roughly 11%.

Keywords: unions, wage inequality, Mexico

JEL Classification: J3, J5

Suggested Citation

Fairris, David, Unions and Wage Inequality in Mexico. Available at SSRN: https://ssrn.com/abstract=395582

David Fairris (Contact Author)

University of California, Riverside (UCR) - Department of Economics ( email )

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