Minimum Wages and Earnings Inequality in Urban Mexico
Author(s) -
Mariano Bosch,
Marco Manacorda
Publication year - 2010
Publication title -
american economic journal applied economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 12.996
H-Index - 82
eISSN - 1945-7782
pISSN - 1945-7790
DOI - 10.1257/app.2.4.128
Subject(s) - inequality , economics , earnings , wage inequality , labour economics , income distribution , distribution (mathematics) , value (mathematics) , minimum wage , wage , demographic economics , mathematics , mathematical analysis , statistics , accounting
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
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