Download or read book The Implications of a Rise in the Minimum Wage on the Mexican Labour Market written by Jorge Alfredo Bouchot Viveros and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis details a comprehensive empirical evaluation of the implications of a minimum wage increase in the Mexican labour market, estimating the impact on real wages, the distribution of earnings, employment, and informal employment. It uses, as a natural experiment the 2012 partial harmonization of Mexico's regional minimum wages, in which one out of the three minimum wage zones experienced an unexpected minimum wage rise. Using Difference in Differences regressions, we fmd no evidence of adverse employment effects in the labour market. Instead, the estimates suggest positive effects on real hourly wages, employment, and occupation in the formal sector. These results can be taken as evidence for the existence of monopsonistic labour markets in Mexico. Synthetic Control Method procedures demonstrate that the employment findings are robust to the choice of estimation method and to the level of aggregation in the data, corroborating non-negative effects on employment. In addition, Unconditional Quantile Regressions for the distributional wage effects suggest a small improvement in wages for the targeted lowest income workers, although, due to positive spillover effects, the relative increase in wages for the upper percentiles is even greater. This has the net effect of actually widening dispersion of wages.
Download or read book The Myth of Market Failure written by Peter Gregory and published by . This book was released on 1986 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book takes sharp issue with the prevailing perception that Mexican employment conditions have not improved or have even deteriorated over time. It reveals a steady and substantial improvement in the earnings of workers at the bottom of the nonagricultural wage structure and shows that rural-urban migration has caused migrants' earnings to rise signinficantly and has not prevented the rise of urban unskilled wages in general. The findings indicate that estimates of the underutilization of labor are not only grossly exaggerated but also misleading for the formulation of employment policy. The author uses new information to estimate the flow of migrant labor to the United States. His examination of Mexican labor markets shows the unexpected importance of nonagricultural labor for rural household incomes. Finally, he assesses the impact on employment of the recent economic crisis and draws on lessons of the past to advance employment policy prescriptions for the future.
Download or read book Good Intentions Bad Outcomes written by Santiago Levy and published by Rowman & Littlefield. This book was released on 2010-01-01 with total page 377 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite various reform efforts, Mexico has experienced economic stability but little growth. Today more than half of all Mexican workers are employed informally, and one out of every four is poor. Good Intentions, Bad Outcomes argues that incoherent social programs significantly contribute to this state of affairs and it suggests reforms to improve the situation. Over the past decade, Mexico has channeled an increasing number of resources into subsidizing the creation of low-productivity, informal jobs. These social programs have hampered growth, fostered illegality, and provided erratic protection to workers, trapping many in poverty. Informality has boxed Mexico into a dilemma: provide benefits to informal workers at the expense of lower growth and reduced productivity or leave millions of workers without benefits. Former finance official Santiago Levy proposes how to convert the existing system of social security for formal workers into universal social entitlements. He advocates eliminating wage-based social security contributions and raising consumption taxes on higher-income households to simultaneously increase the rate of growth of GDP, reduce inequality, and improve benefits for workers. Go od Intentions, Bad Outcomes considers whether Mexico can build on the success of Progresa-Oportunidades, a targeted poverty alleviation program that originated in Mexico and has been replicated in over 25 countries as well as in New York City. It sets forth a plan to reform social and economic policy, an essential element of a more equitable and sustainable development strategy for Mexico.
Download or read book Law and Employment written by James J. Heckman and published by University of Chicago Press. This book was released on 2007-11-01 with total page 585 pages. Available in PDF, EPUB and Kindle. Book excerpt: Law and Employment analyzes the effects of regulation and deregulation on Latin American labor markets and presents empirically grounded studies of the costs of regulation. Numerous labor regulations that were introduced or reformed in Latin America in the past thirty years have had important economic consequences. Nobel Prize-winning economist James J. Heckman and Carmen Pagés document the behavior of firms attempting to stay in business and be competitive while facing the high costs of complying with these labor laws. They challenge the prevailing view that labor market regulations affect only the distribution of labor incomes and have little or no impact on efficiency or the performance of labor markets. Using new micro-evidence, this volume shows that labor regulations reduce labor market turnover rates and flexibility, promote inequality, and discriminate against marginal workers. Along with in-depth studies of Colombia, Peru, Brazil, Argentina, Chile, Uruguay, Jamaica, and Trinidad, Law and Employment provides comparative analysis of Latin American economies against a range of European countries and the United States. The book breaks new ground by quantifying not only the cost of regulation in Latin America, the Caribbean, and in the OECD, but also the broader impact of this regulation.
Download or read book Measuring the Impact of Minimum Wages written by William Francis Maloney and published by World Bank Publications. This book was released on 2003 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Simple numerical measures of the minimum wage may offer deceptive indicators of its impact. Alternative measures, such as kernel density or cumulative distribution plots, are more reliable, and highlight influences higher in the wage distribution or on the informal sector. Panel employment data from Colombia, where minimum wages seem high and binding, show that the minimum wage can have important impacts on wages and unemployment across the wage distribution.
Download or read book Myth and Measurement written by David Card and published by Princeton University Press. This book was released on 2015-12-22 with total page 454 pages. Available in PDF, EPUB and Kindle. Book excerpt: From David Card, winner of the Nobel Prize in Economics, and Alan Krueger, a provocative challenge to conventional wisdom about the minimum wage David Card and Alan B. Krueger have already made national news with their pathbreaking research on the minimum wage. Here they present a powerful new challenge to the conventional view that higher minimum wages reduce jobs for low-wage workers. In a work that has important implications for public policy as well as for the direction of economic research, the authors put standard economic theory to the test, using data from a series of recent episodes, including the 1992 increase in New Jersey's minimum wage, the 1988 rise in California's minimum wage, and the 1990–91 increases in the federal minimum wage. In each case they present a battery of evidence showing that increases in the minimum wage lead to increases in pay, but no loss in jobs. A distinctive feature of Card and Krueger's research is the use of empirical methods borrowed from the natural sciences, including comparisons between the "treatment" and "control" groups formed when the minimum wage rises for some workers but not for others. In addition, the authors critically reexamine the previous literature on the minimum wage and find that it, too, lacks support for the claim that a higher minimum wage cuts jobs. Finally, the effects of the minimum wage on family earnings, poverty outcomes, and the stock market valuation of low-wage employers are documented. Overall, this book calls into question the standard model of the labor market that has dominated economists' thinking on the minimum wage. In addition, it will shift the terms of the debate on the minimum wage in Washington and in state legislatures throughout the country. With a new preface discussing new data, Myth and Measurement continues to shift the terms of the debate on the minimum wage.
Download or read book The Impact of Minimum Wages in Mexico and Colombia written by A. Linda Bell and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: September 1995 Comparative data from Mexico and Colombia are used to analyze the impact of minimum wages. In Mexico, low levels of compliance and ineffective levels of minimum wages imply negligible employment effects. In Colombia, where the minimum wage is closer to the average wage in the formal sector, the minimum wage has a significant impact on employment. There are diverging views about how minimum wages affect labor markets in developing countries. Advocates of minimum wages hold that they redistribute resources in a welfare-enhancing way, and can thus reduce poverty, improve productivity, and foster growth. Opponents, on the other hand, contend that minimum wage interventions result in a misallocation of labor and lead to depressed wages in the very sectors -- the rural and informal urban sectors -- where most of the poor are found, with the effect of wasting resources and reducing the growth rate. Data from Colombia and Mexico for the 1980s provide an opportunity to evaluate the impact of minimum wages. In Mexico in the 1980s, the minimum wage fell in real terms roughly 45 percent. By 1990, Mexico's minimum wage was about 13 percent of the average unskilled manufacturing wage. During the same period, the minimum wage in Colombia increased at nearly the same rate, reaching roughly 53 percent of the average unskilled wage. Bell charts how the mandated minimum wage affected the demand for skilled and unskilled labor in both countries during that decade. She finds: * In Mexico, minimum wages have had virtually no effect on wages or employment in the formal sector. The main reason: the minimum wage is not an effective wage for most firms or workers. In the informal sector, in turn, there is considerable noncompliance with the mandated minimum wage, especially among part-time and female workers. As a result, significant numbers of workers are paid at or below minimum wages. * In Colombia, minimum wages have a much stronger impact on wages, judging from their proximity to the average wage and both cross-section and time series estimates. The estimates imply that the elasticity of low-paid unskilled employment with respect to minimum wages is in the range of 2 to 12 percent. This paper -- a product of the Poverty and Human Resources Division, Policy Research Department -- is part of a larger effort in the department to analyze the implications of labor market distortions. The study was funded by the Bank's Research Support Budget under the research project The Impact of Labor Market Policies and Institutions on Economic Performance (RPO 678-46).
Download or read book Employment and Unemployment in Mexico s Labor Force written by Susan Fleck and published by . This book was released on 1994 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Growth Employment and Trade in an Industrializing Economy written by Bernhard Fischer and published by . This book was released on 1982 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research report on economic growth, employment creation and trade in a newly industrializing country, comprising a quantitative analysis of development policy since 1950 in Mexico - applying an economic model, analyses price distortions and production factor mobility (incl. Subsidys, minimum wages, land reform and tax incentives); considers agricultural policy and industrialization policy options; examines the likely impact on productivity, income distribution, regional development, etc.; and provides a validation of the model. Bibliography.).
Download or read book Activities Employment and Wages in Rural and Semi urban Mexico written by Dorte Verner and published by World Bank Publications. This book was released on 2005 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: The author addresses the labor markets in rural and semi-urban Mexico. The empirical analyses show that non-farm income shares increase with overall consumption levels and, also, with time. Rural-dwellers in lower quintiles of the consumption distribution tend to earn a larger share of their nonagricultural incomes from wage labor activities. For the poorest, low-productivity wage labor activities are important. The quantile wage regression analysis for rural Mexico shows a rather heterogeneous impact pattern of individual characteristics across the wage distribution on monthly wages. The author's findings reveal that education is key to earning higher wages, and that workers in more dispersed rural areas earn less than their peers in semi-urban rural areas (localities with less than 15,000 inhabitants). The rural non-farm sector is heterogeneous and includes a great variety of activities and productivity levels across non-farm jobs. Moreover it can reduce poverty in a couple of distinct but qualitatively important ways in rural Mexico. The analysis of non-farm employment in rural Mexico suggests that the two key determinants of access to employment and productivity in non-farm activities are education and location.
Download or read book The Effects of the Minimum Wage on Employment written by Marvin H. Kosters and published by American Enterprise Institute. This book was released on 1996 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Clinton administration has claimed its proposal to increase the minimum wage would not affect employment; other research supports that a higher minimum wage means fewer jobs.
Download or read book The Labor Market and Economic Adjustment written by Pierre-Richard Agénor and published by International Monetary Fund. This book was released on 1995-11-01 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.
Download or read book Essays on Economic Policy and Labor Market Outcomes written by Zadia Maria Feliciano and published by . This book was released on 1995 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Implications of Minimum Wage Increases on Labor Market Dynamics Lessons for Emerging Economics written by Ximena V. Del Carpio and published by . This book was released on 2017 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper offers evidence on the relationship between the minimum wage and unemployment and informal employment, and identifies some of the lessons learned on the potential effects of increasing the minimum wage. Most of the evidence suggests that sizable increases in the minimum wage are likely to exacerbate unemployment and the prevalence of informal employment, which could have negative consequences for labor productivity and businesses as a result of reduced investment in employee training and loss of productive workers. This outcome occurs when businesses adopt the main channels available for absorbing increased labor costs. The majority of the empirical evidence suggests that the effects of minimum wage increases on unemployment and the demand for labor are unclear. The outcome depends in large part on the specific characteristics of the labor markets and the degree of compliance with the minimum wage law. Most of those affected by minimum wage increases are less qualified workers. In Latin American and Asia, differences in the effects of minimum wage increases depend largely on the size and type of firms. In countries with high levels of informal employment, minimum wage increases can increase informal employment, since the formal workers who lose their jobs are absorbed by the informal sector of the economy. In general, businesses have five mechanisms for absorbing the added labor costs. Given the characteristics of the labor market in emerging economies, it is likely that businesses faced with increased labor costs will resort to less than optimal channels, which will tend to affect their productivity and the labor market in general.
Download or read book The Minimum Wage written by Deepak Lal and published by . This book was released on 1995 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: CONTENTS: Introduction; Poverty Alleviation; Efficiency; Conclusions; Summary.
Download or read book Mexico written by Gladys Lopez Acevedo and published by World Bank Publications. This book was released on 2005 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors follow the Hellerstein, Neumark, and Troske (1999) framework to estimate marginal productivity differentials and compare them with estimated relative wages. The analysis provides evidence on productivity and nonproductivity-based determinations of wages. Special emphasis is given to the effects of human capital variables, such as education, experience, and training on wages and productivity differentials. Higher education yields higher productivity. However, highly educated workers earn less than their productivity differentials would predict. On average, highly educated workers are unable to fully appropriate their productivity gains of education through wages. On the other hand, workers with more experience are more productive in the same proportion that they earn more in medium and large firms, meaning they are fully compensated for their higher productivity. Finally, workers in micro and small firms are paid more than what their productivity would merit. Training benefits firms and employees since it significantly increases workers' productivity and their earnings.
Download or read book Mexico written by International Monetary Fund. Western Hemisphere Dept. and published by International Monetary Fund. This book was released on 2018-11-08 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Selected Issues paper on Mexico documents the composition, trends, and labor market implications of informality using data from the National Employment Survey (ENOE). Over half of the employed population has informal contractual relationships in Mexico both at formal and informal firms. Informality is found to be associated with lower levels of pay—even when accounting for worker composition differences—and lower wage growth over the life cycle. Policy drivers of this market duality, including minimum wage policy, are discussed. The results suggest that informality tends to select workers with lower earnings potential and limits their development. Informality indeed tends to be more prevalent among younger and less educated workers, for which better paid jobs are harder to come by. Moreover, it appears to lead workers toward a path of limited earnings and perhaps skill growth potential. Future labor market reforms should take a holistic approach that addresses both distributional concerns and formality barriers. One alternative is to reduce dependence on payroll taxes that are biased toward formal salaried workers while transitioning toward a social insurance system that provides good-quality services for all, irrespective of their salaried/nonsalaried status.
