Abstract

ANDRADE ROSAS, Luis Antonio  and  VEGA BLANCO, Manuel Vladimir. How the lack of economic improvements lead to the inability to wage increases: An economic model applied to the minimum wage in Mexico City. Estud. soc [online]. 2017, vol.27, n.49, pp.151-180. ISSN 0188-4557.

To consider wage increases in a society, it is important to know your economic status, and relevant variables that characterize it. Objective: We show the negative effects of a skewed income distribution on a possible increase in the minimum wage in Mexico City. Results: By eliminating wages below the current minimum, we can achieve a near minimum wage to 300 percent above the current level under equilibrium conditions. Limitations: The policy to follow to reach the elimination of wages below the minimum does not correspond to actual work objectives. Conclusions: It is obtained that, due to a skewed distribution of wages, there are no conditions to improve the current minimum wage, unless there are reforms that allow to set wages by above the current minimum wage.

Keywords : Regional development; wages; income distribution; inequality; political reforms and balance.

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