The Mexican Wage Curve 2000-2003: A Quantile Analysis

Gutierrez Rufrancos, Hector Elias (2012) The Mexican Wage Curve 2000-2003: A Quantile Analysis. Working Paper. University of Sussex Economics Department, Brighton, UK.

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Abstract

This paper exploits the Mexican Encuesta Nacional de Empleo Urbano (ENEU) to determine the existence of the wage curve—an empirical phenomena first suggested by Blanchflower and Oswald (1990)—during the period 2000–2003. We propose an innovative approach to the wage curve by estimating the elasticity across the wage distribution. This is applied to the Mexican experience during the early 2000s recession.
The evidence indicates that for Mexico during this period there is no wage curve, and that wages are positively affected by local levels of unemployment. This lends credibility to the Harris and Todaro (1970) view which suggests that there is segmentation in the labour market with residual unemployment. We argue that perhaps the power
of unions may account for our findings.

Item Type: Reports and working papers (Working Paper)
Keywords: Wage curve, unemployment, Formal/Informal Employment, Urban labour markets, Mexico, JEL Classification: C21, J30, J60 O17
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HB Economic theory. Demography > HB0131 Methodology > HB0135 Mathematical economics. Quantitative methods Including econometrics, input-output analysis, game theory
Depositing User: Hector Gutierrez Rufrancos
Date Deposited: 16 Aug 2012 08:12
Last Modified: 16 Aug 2012 08:12
URI: http://sro.sussex.ac.uk/id/eprint/40397

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