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Minimum Wages and Earnings Inequality in Urban Mexico

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Abstract:

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.

Document Type: Research Article

DOI: https://doi.org/10.1257/app.2.4.128

Publication date: 2010-10-01

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