Minimum Wages and Inequality in Mexico: A Latin American Perspective

Abstract

Mexico’s minimum wage in real terms has experienced a persistent decline since the 1970s. At the same time the share of wages in national income has declined steadily, while inequality remains one of the most pressing socio-economic challenges. Despite some important recent progress in Mexican policy, raising the minimum wage in a sustainable manner to meet the constitutional mandate and support a reduction in inequality in the country requires a more profound policy change. This paper present a brief analysis of the minimum wage in Mexico from a Latin American comparative perspective.