We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Behavior analysis of real wages in Mexico (1995-2018).
- Authors
Pérez-Soto, Francisco; Figueroa-Hernández, Esther; Varela-Ramírez, Mario A.; Escamilla-García, Pablo E.; Jiménez-García, Martha
- Abstract
Objective: To determine through econometric analysis which variables —inflation, real exchange rate, unemployment, and consumption— have a major impact on workers’ wages and, therefore, on production. Design/Methodology/Approach: We developed a multiple linear regression model for the behavior of macroeconomic variables in Mexico from 1995 to 2018, using the ordinary least squares method (OLS) and the Gretl statistical package. Results: The analysis of the model showed that inflation, exchange rate, and unemployment are highly significant, unlike consumption. For the model of real wages in Mexico, we obtained a 0.87 coefficient of determination —i.e., the variables included in the model account for 87% of the wages’ behavior. The relation of consumption, unemployment, and inflation to wages was as expected. Regarding the exchange rate, the result was the opposite of the expectations. The wage-unemployment elasticity had the greatest impact. Study Limitations/Implications: The database used was the main limitation because it relies on official sources, which lack data and show inconsistencies. Findings/Conclusions: The study helped to determine whether or not the proposed variables affected the national economic growth. Mexico is not a first-world country than can offer high salaries; therefore, the Mexican economy must continue to grow, before it reaches a higher per capita income. In this regard, it is essential to consider the extent to which the new government’s proposals will be able to face the reality: very few and very low-quality jobs are created, despite what the official figures say.
- Subjects
MEXICO; REAL wages; BEHAVIORAL assessment; FOREIGN exchange rates; PAYROLL accounting; MACROECONOMIC models; UNEMPLOYMENT statistics
- Publication
Agro Productividad, 2022, Vol 15, Issue 8, p57
- ISSN
2448-7546
- Publication type
Article
- DOI
10.32854/agrop.v15i8.1880