Mexico | The minimum wage policy: a necessary but insufficient debate

Summary

The minimum wage policy has been insufficient to attack the structural problems of the labor market. It has eclipsed the need to discuss more structural aspects of the economy that allow for a more robust labor market and a horizon for creating jobs with better remuneration.

Key points

• Key points:
• Gains in the minimum wage have contributed to raising the level of remuneration of lower-income workers.
• The positive effect of the increase in the minimum wage has been limited since it has caused a greater concentration in jobs of up to two minimum wages.
• In 2015, 19.8% of salaried workers in labor informality had an income equivalent to up to a minimum wage; by 2022, the percentage reached 51.6%.

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