Abstract

PUYANA, Alicia  and  ROMERO, José. STRUCTURAL REFORM, WAGE RESTRAINT AND INCREASED PROFITS: THE MEXICAN EXPERIENCE. Rev.econ.inst. [online]. 2005, vol.7, n.12, pp.63-95. ISSN 0124-5996.

In Mexico, wages have stagnated and profits have increased since 1980. This paper analyzes the causes of this performance both at an aggregate and sectorial level. Although in theory trade liberalization should have led to increased wages and a reduction of profits, an unlimited supply of labor prevented wages from increasing and transformed productivity gains in higher returns on capital. Growth of qualified employment was not the result of generalized technological advances; it reflected changes in the composition of labor supply. Higher investment in human capital does not necessarily lead to higher productivity or income. If the improvement in education of the labor force is to generate higher productivity, a public policy of stimulus for economic growth is required.

Keywords : wage; profit; skills; technology; liberalization.

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