Abstract

GOMEZ RODRIGUEZ, Tomás; RIOS BOLIVAR, Humberto  and  ZAMBRANO REYES, Adriana. Impacts of the minimum wage and informal employment on income earnings in Mexico. Prob. Des [online]. 2019, vol.50, n.199, pp.177-201.  Epub June 19, 2020. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2019.199.67516.

The present research examines the issue of how the minimum wage and informal employment impact differences in income earnings. To this end, a Censorship Model is proposed that uses data codified for a subset of the population. Calculations for this model were performed using two econometric methods: Ordinary Least Squares (OLS) and the Generalized Method of Moments (GMM). In both cases, microdata from the National Occupation and Employment Survey where used for each federal entity, covering the period of 2005-2014. The results demonstrate that the minimum wage widens the gap in income earnings, while the informal sector has a reducing effect on differences in income earnings.

Keywords : minimum wage; informal employment; income inequality; data panel.

        · abstract in Spanish     · text in English | Spanish     · English ( pdf ) | Spanish ( pdf )