Abstract

KATO VIDAL, Enrique Leonardo  and  PUENTE NOVELL, Jorge Joaquín. Employment and social security in Mexico: impact of the sector and company size. Economía UNAM [online]. 2018, vol.15, n.45, pp.108-123. ISSN 1665-952X.  https://doi.org/10.22201/fe.24488143e.2018.45.408.

Similar to other Latin American economies, the social protection of workers in Mexico has declined since the 1970 (Hernández Laos, 2011). This trend has been interrupted in recent years in which a significant increase in the percentage of workers insured by the IMSS has been observed. Working with the available data, the causes of the increase in the insured employment rate in Mexico were examined from 2005 to 2016. The explanation is based on sectoral changes in employment and is complemented by an econometric estimation that uses the sizes of the registered companies and other control variables as predictors. We estimate that currently one in five businesses in Mexico has a record in the IMSS. We found that the increase in the insured employment rate in Mexico is due to a greater contribution of both the retail and services sectors as well as the support of midsize and large companies. Using data from the INEGI employment survey, the increase in the IMSS insured rate is only partially corroborated. We identified an excess of labor supply in the insured employment market, which facilitated, along with the modernization of the services sector and the labor reforms, facilitated the increase in the coverage rate without wage pressures. An excess of registered labor demand is expected in the next few years that may cause a real wage increase in the Mexican economy.

Keywords : Labor Economics; Related Public Policy; Formal and Informal Sectors; J, J28; O17.

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