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)
Bosch, Mariano, and Marco Manacorda.
"Minimum Wages and Earnings Inequality in Urban Mexico."
American Economic Journal: Applied Economics,
Wage Level and Structure; Wage Differentials
Wages, Compensation, and Labor Costs: Public Policy
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Economic Development: Regional, Urban, and Rural Analyses; Transportation
Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics