Manufacturing real wages in Mexico

• Autor(a) principal: López V,Antonia
• Data de Publicação: 2006
• Outros Autores: Gallardo,Julio López
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Revista de Economia Política
• Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572006000300008
• topic: real wages; Mexico; imperfect labour market; panel data; Generalized Method of Moments

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.