Wage, Unemployment and Labor Productivity in the Mexican Manufacturing Industry (Salarios, desempleo y productividad laboral en la industria manufacturera mexicana)

Main Article Content

José Abraham López Machuca
Jorge Eduardo Mendoza Cota

Abstract

The article evaluates the relationship between the productivity of labor, unemployment and real wages in Mexico for the period 2007-2015. Based on the wage curve theoretical model, the methodology used for analysis applies static and dynamic econometric techniques for panel data and also long-run cointegration. The results suggest that the low wage level and the slow growth exhibited for several decades could be explained by important rigidities. The estimations showed an inverse relationship of wages with respect to labor productivity and unemployment. The variation of the level of prices and minimum wage did not generate important changes on real wages.

 

El artículo evalúa la relación de la productividad laboral y el desempleo con los salarios reales en México durante el periodo 2007 a 2015. Basándose en el modelo de la curva de salarios, la metodología utilizada emplea técnicas econométricas diseñadas para estructuras funcionales estáticas, dinámicas y de cointegración de largo plazo. Los resultados sugieren que los salarios bajos pueden explicarse por la presencia de rigideces importantes, por lo que los salarios guardan una relación inversa con la productividad laboral y el desempleo. Las variaciones en los precios y del salario mínimo no generan cambios significativos en los salarios reales.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

Article Details

How to Cite
López Machuca, J. A., & Mendoza Cota, J. E. (2017). Wage, Unemployment and Labor Productivity in the Mexican Manufacturing Industry (Salarios, desempleo y productividad laboral en la industria manufacturera mexicana). Ensayos Revista De Economía (Ensayos Journal of Economics), 36(2), 185–228. https://doi.org/10.29105/ensayos36.2-4
Section
Articles
Author Biographies

José Abraham López Machuca, El Colegio de la Frontera Norte.

Maestro en Economía Aplicada por El Colegio de la Frontera Norte.

Jorge Eduardo Mendoza Cota, El Colegio de la Frontera Norte.

Profesor de tiempo completo del Departamento de Estudios Económicos de El Colegio de la Frontera Norte. Doctor en Economía por la Universidad de Utah, Estados Unidos. Dirección: Km. 18.5 Carretera Escénica Tijuana - Ensenada, San Antonio del Mar. Tijuana Baja California, México, C. P. 22560.

References

Adams, J. D. (1985). “Permanent Differences in Unemployment and Permanent Wage Differentials”. The Quarterly Journal of Economics, 100(1), 29-56.

Akerlof, G. A. (1980). “A Theory of Social Custom, of Which Unemployment May Be One Consequence”. The Quarterly Journal of Economics, 94(4), 749-775.

Akerlof, G. A. y Yellen, J. L. (1990). “The Fair Wage-Effort Hypothesis and Unemployment”. The Quarterly Journal of Economics, Mayo, 105(2), 255-283.

Alexander, C. O. (1993). “The Changing Relationship Between Productivity, Wages and Unemployment in the UK”. Oxford Bulletin of Economics and Statistics, 55(1), 877-102.

Álvarez, J. y Arellano, M. (2003). “The Time Series and Cross-Section Asymptotics of Dynamic Panel Data Estimators”. Econometrica, Julio, 71(4), 1121-1159.

Arellano, M. y Bond, S. (1991). “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations”. The Review of Economic Studies, Abril, 58(2), 277-297.

Azariadis, C. y Stiglitz, J. E. (1983). “Implicit Contracts and Fixed Price Equilibria”. The Quarterly Journal of Economics, 98, supplement, 1-22.

Baltagi, B. H. (2005). Econometric Analysis of Data Panel. 3a ed. Inglaterra: John Wiley y Sons Ltd.

Blackaby, D. H. y Manning, D. N. (1987). “Regional Earnings Revisited”. The Manchester School, Junio, 55(2), 158-183.

Blanchard, O. J. y Katz, L. F. (1992). “Regional Evolutions”. Brookings Papers on Economic Activity, 1, 1-75.

Blanchard, O. J. y Summers, L. H. (1987). “Hysteresis in Unemployment”. European Economic Review, 31(1/2), 288-295.

Blanchflower, D. G. y Oswald, A. J. (1990). “The Wage Curve”. The Scandinavian Journal of Economics, 2(92), 215-235.

Blanchflower, D. G. y Oswald, A. J. (1994). “Estimating a Wage Curve for Britain 1973-1990”. The Economic Journal, 104, 1025-1043.

Breitung, J., (2001). “The Local Power of Some Unit Root Tests for Panel Data”. En Baltagi, B. H., Fomby T. B. y Carter Hill R. (Eds), Nonstationary Panels, Panel Cointegration, and Dynamic Panels. s.l. (161-177), Emerald Group Publishing Limited.

Castellanos, S. G. (2010). “Desempleo y Determinacion de Salarios en la Industria Manufacturera de México”. Economía Mexicana, Enero-Junio, XIX(1), 171-198.

Castro, D. (2006). “Curva salarial: una aplicación para el caso de México, 1993-2002”. Estudios Económicos, Julio-Diciembre, 21(2), 233-273.

CEFP. (2004). “Evolucion del Sector Manufacturero de México, 1980-2003”. Centro de Estudios de las Finanzas Públicas, Cámara de de Diputados, México.

Choi, I. (2001). “Unit Root Tests for Panel Data”. 20(1), 249-272.

Engle, R. F. y W.J. Granger, W, J. (1987). “Cointegration and error correction: Representation,

estimation and testing”. Econometrica, 55, 251-276.

Freeman, R. B. (1988). “Evaluating the European View that the United States Has No Unemployment Problem”. The American Economic Review, Mayo, 78(2), 294-299.

Friedman, M. (1968). “The Role of Monetary Policy”. American Economic Review, Marzo, LVIII(1), 1-17.

Galindo, L. M. y Catalán, H. (2010). “El Mercado Laboral en México: ¿Una Curva de Salarios?”. Comercio Exterior, Marzo, 60(3), 221-232.

Goh, S. K. y Wong, K. N. (2010). “Analyzing the Productivity-Wage-Unemployment Nexus in Malaysia: Evidence from the Macroeconomic Perspective”. International Research Journal of Finance and Economics, Volume 53, 145-156.

Gregory, R. G. (1986). “Wages Policy and Unemployment in Australia”. Economica, New Series, 53(210, supplement), S53-S74.

Hadri, K. (2000). “Testing for Stationarity in Heterogeneus Panel Data”. Econometric Journal, 3(1), 148-161.

Hall, R. E., Gordon, A. y Holt, C. (1972). “Turnover in the Labor Force”. Brookings Papers on Economic Activity, 1972(3), 709-764.

Harris, J. R. y Todaro, M. P. (1970). “Migration, Unemployment and Development: A Two-Sector Analysis”. American Economic Review, 60(1), 126-142.

Im, K. S., Pesaran, M. H. y Shin, Y. (2003). “Testing for Unit Roots in Heterogeneous Panels”. Journal of Economics, Julio, 115(1), 53-74.

INEGI (2016). Instituto Nacional de Estadística y Geografía (INEGI). [Online] Disponible en: www.inegi.org.mx [Acceso 09 Mayo 2016].

Jones, S. R. G. (1989). “Reservation Wages and the Cost of Unemployment”. Economica, Mayo, 56(222), 225-246.

Kao, C. y Chiang, M. H. (2001). “On the Estimation and Inference of a Cointegrated Regression in Panel Data”. En: Baltagi, B. H., Fomby T.B. y Hill R.C. (Eds). Nonstationary Panels, Panel Cointegration, and Dynamic Panels. s.l.(179-222):Emerald Group Publishing Limited.

Kumar, S., Webber, D. J. y Perry, G. (2012). “Real wages, inflation and labour productivity in Australia”. Applied Economics, 44(23), 2945-2954.

Lavy, J. y Sussman, N. (2001). The Determination of Real Wages in the Long Run and its Changes in the Short Run: Evidence from Israel, s.l.: Research Department, Bank of Israel.

Layard, R. y Nickell, S. (1986). “Unemployment in Britain”. Economica, 53(210), S121-S169.

Levin, A., Lin, C. F. y Chu, C.-S. J. (2002). “Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties”. Journal of Econometrics, 108(1), 1-24.

Lindbeck, A. y Snower, D. J. (1986). “Wage Setting, Unemployment, and Insider-Outsider Relations”. The American Economic Review, Mayo, 76(2), 235-239.

Maddala, G. S. y Wu, S. (1999). “A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test”. Oxford Bulletin of Economics and Statistics, Noviembre, 61(1), 631-652.

Marston, S. T. (1985). “Two Views of the Geographic Distribution of Unemployment”. The Quarterly Journal of Economics , 100(1), 57-79.

Mendoza, E. y Martínez , G. (1999). “Globalización y Dinámica Industrial en la Frontera Norte de México”. Comercio Exterior, 49(9), 795-806.

Mortensen, D. T. (1986). “Job Search and Labor Market Analysis”. En: Ashenfelter, O.y Layard, R. (Eds). Handbook of Labor Economics. Amsterdam(North-Holland): s.n., 849-919.

Pedroni, P. (1999). “Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors”. Oxford Bulletin of Economics and Statistics, Noviembre, 61( 1), 653–670.

Phelps, E. S. (1968). “Money-Wage Dynamics and Labor-Market Equilibrium”. Journal of Political Economy, 76( 4), 679-711.

Phillips, A. W. (1958). “The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957”. Economica, 25(100), 283-299.

Phillips, P. C. B. y Hansen, B. E. (1990). “Statistical Inference in Instrumental Variables Regression with I(1) Processes”. The Review of Economic Studies , 57( 1), 99-125.

Pissarides, C. A. y MacMaster, I. (1990). “Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy”. Oxford Economic Papers, 42(4), 812-831.

Reza, A. M. (1978). “Geographical Differences in Earnings and Unemployment Rates”. The Review of Economics and Statistics, 60( 2), 201-208.

Rivera, M. Á. (2001). “México en la Economía Global: Reinserción Aprendizaje y Coordinación”. Problemas de Desarrollo, 32(127), 75-105.

Roback, J. (1982). “Wages, Rents, and the Quality of Life”. Journal of Political Economy , 90( 6), 1257-1278.

Saikkonen, P. (1992). “Estimation and Testing of Cointegrated Systems by an Autoregressive Approximation”. Econometric Theory, 8( 1), 1-27.

Shapiro, C. y Stiglitz, J. E. (1984). “Equilibrium Unemployment as a Worker Discipline Device”. American Economic Association, 74( 3), 433-444.

Stiglitz, J. E. (1986). “Theories of Wage Rigidity”. En Butkiewicz, J. L., Koford, K. J. y Miller, J. B. (Eds). Keynes' Economic Legacy: Contemporary Economic theories. New York: Praeger Publishers, 153-206.

Stock, J. y Watson, M. W. (1993). “A Simple Estimator of Cointegrating Vectors in Higher-Order Integrated Systems”. Econometrica, 61(4), 783-820.

Strauss, J. y Wohar, M. E. (2004). “The Linkage between Prices, Wages, and Labor Productivity: A Panel Study of Manufacturing”. Southern Economic Journal, 70( 4), 920-941.

Topel, R. H. (1986). “Local Labor Markets”. 94, 3, S111-S143.

Wakeford, J. (2004). “The Productivity-Wage Relationship in South Africa: An Empirical Investigation”. Development Southern Africa, 21( 1), 109-132.

Wanger, M. y Hlouskova, J. (2007). “The Performance of Panel Cointegration Methods: Results from a Large Scale Simulation Study”. Economics Series, 1-45.