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Exchange rate pass-through inflation and wage differentials in late-industrializing economies: the Mexican case

Author

Listed:
  • Teresa S. Lópes
  • Quadalupe Mantéy
  • Luis Quintana

Abstract

This paper investigates exchange rate pass-through inflation, and the wage bargaining process, in a developing economy in which firms’ market power is largely dependent on technical progress embodied in imported intermediates and capital goods. It develops a heterodox model of income distribution, based on theoretical contributions from Latin American structuralists, labor market segmentationists and post-Keynesian writers, and it presents supportive empirical evidence from the Mexican economy. JEL Classification: E11; E12; E31; J31; O11.

Suggested Citation

  • Teresa S. Lópes & Quadalupe Mantéy & Luis Quintana, 2012. "Exchange rate pass-through inflation and wage differentials in late-industrializing economies: the Mexican case," Brazilian Journal of Political Economy, Center of Political Economy, vol. 32(4), pages 634-655.
    • Handle: RePEc:ekm:repojs:v:32:y:2012:i:4:p:634-655:id:374
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    More about this item

    Keywords

    income distribution; inflation; developing economies;
    All these keywords.

    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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