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Manufacturing real wages in Mexico

Author

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  • Antonia López Villa Vicencio
  • Julio López Gallardo

Abstract

In this paper we analyse the recent evolution and determinants of real wages in Mexico’s manufacturing sector, using theories based on the assumption of imperfect competition both in the product and in the labour markets, especially wage-bargain theory, insider-outsider and mark-up models. We show evidence that the Mexican labour market does not behave as a traditional competitive market. The proposed explanation for this fact is that some workers benefit from advantages when compared with others, so that they can get a greater share of the proceedings of the productive process. Also, we find that changes in the degree of competition in the market for output influence the behaviour of real wages. JEL Classification: E24, C51, J31.

Suggested Citation

  • Antonia López Villa Vicencio & Julio López Gallardo, 2006. "Manufacturing real wages in Mexico," Brazilian Journal of Political Economy, Center of Political Economy, vol. 26(3), pages 459-474.
    • Handle: RePEc:ekm:repojs:v:26:y:2006:i:3:p:459-474:id:610
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/610/608
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    Citations

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    Cited by:

    1. Worku Gebeyehu, 2017. "Trade Reforms, Mark-Ups and Bargaining Power of Workers: the Case of Ethiopian Manufacturing Firms," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 25(1), March.

    More about this item

    Keywords

    real wages; Mexico; macroeconomy and labor market; panel data; Generalized Method of Moments;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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