Abstract

LORIA, Eduardo  and  TIRADO, Raúl. SACRIFICE RATE AND LABOUR PRECARIOUSNESS IN MEXICO, 2005Q1-2019Q4. Cuad. Econ. [online]. 2022, vol.41, n.87, pp.427-456.  Epub Jan 24, 2023. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v41n87.92783.

Since 2005 the Mexican economy has registered four disinflationary episodes. We estimate six Phillips curves (OLS and ARDL), to evaluate the sacrifice rate in the GDP, in the unemployment rate, and in the Rate of Critical Labour Conditions (RCLC). Our contribution is that, by including labour precariousness in the New Keynesian Phillips Curve, augmented with the RCLC, inflation is more accurately modelled. We determine that labour precariousness has been the main disinflationary adjustment variable and we found that there are cointegrating relationships indicating that a one-point reduction in inflation increases the RCLC by 3.65 points in the long run.

Keywords : New Keynesian Phillips Curve; labour precariousness; unemployment; disinflation; cointegration; ARDL; sacrifice rate.

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