Abstract

ANDRADE ROSAS, Luis Antonio; GAYTAN ALCALA, Felipe  and  BAUTISTA LEON, Andrea. Between economic dilemmas and citizen confidence: salaries and inflation in Mexico. Rev.econ.inst. [online]. 2024, vol.26, n.50, pp.53-82.  Epub Mar 11, 2024. ISSN 0124-5996.  https://doi.org/10.18601/01245996.v26n50.03.

Sometimes, subsidiary policies mitigate inflationary problems and try to avoid social protests, maintain or increase confidence in the government. We compare the relationships between wages and inflation for the last three six-year terms in Mexico. For the period 2006-2012 the level of inflation does not determine a salary increase, in 20122018, it caused an increase of 4% and since 2018, the increase was 16.4%. Additionally, we estimate the percentage of acceptance of each government, based on inflationary and subsidiary policies, using a logit model. The results show that inflation negatively affected government acceptance by 0.113%, while the salary increase increased it by 0.108%. Regarding each ruler, the acceptance of 79% of the government in turn stands out, being the largest in recent decades.

Keywords : Citizen Trust, social policy, minimum wages, inflation; JEL: D04, D31, D63, E24.

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