American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Minimum Wages and Earnings Inequality in Urban Mexico
American Economic Journal: Applied Economics
vol. 2,
no. 4, October 2010
(pp. 128–49)
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 of the growth in inequality in the bottom end of the distribution, is due to the steep decline in the real value of the minimum wage. (JEL J31, J38, O15, O17, O18, R23)Citation
Bosch, Mariano, and Marco Manacorda. 2010. "Minimum Wages and Earnings Inequality in Urban Mexico." American Economic Journal: Applied Economics, 2 (4): 128–49. DOI: 10.1257/app.2.4.128Additional Materials
JEL Classification
- J31 Wage Level and Structure; Wage Differentials
- J38 Wages, Compensation, and Labor Costs: Public Policy
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O18 Economic Development: Regional, Urban, and Rural Analyses; Transportation
- R23 Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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