Abstract
The literature on minimum wages in Mexico has focused largely on their impact on poverty, and poverty reduction, while their relationship with inequality has not been fully explored. The purpose of this chapter is to examine the status and dynamics of the minimum wage in Mexico and its relation with income inequality from a Latin American comparative perspective. In this context, we are mostly interested in juxtaposing the Mexican experience with the cases of Brazil, Argentina, and Chile, as three countries of roughly comparable economic development in the region pursuing labour policies diametrically opposing those of Mexico. In light of this Mexican exceptionality, we analyse the relationship between minimum wages and inequality in the country, and what Mexico could learn from the diverging experience of the other countries, with the aim of providing some recommendations to policymakers.
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