publication . Article . 2010

Unemployment and Salary Formation in the Mexican Manufacturing Industry: A Dynamic Panel Analysis

Sara G. Castellanos;
Open Access
  • Published: 01 Jan 2010 Journal: Economia Mexicana NUEVA EPOCA, volume XIX, issue 1 January-June, pages 171-198
In this article we study the relationship between wages, unemployment and labor productivity in Mexico’s manufacturing sector. We use the data of Monthly Industrial Survey, produced by the National Institute of Statistics (INEGI), to estimate a model with the generalized method of moments for dynamic panel data of Arellano and Bond (1991). This method exploits the cross time and cross section variability of the industrial sector data, and yields consistent and efficient estimators. Results suggest that unemployment slows down wage increases, while labor productivity accelerates them. In both cases, the effect is statistically significant.
free text keywords: nominal wages, unemployment, Mexico., jel:J31
32 references, page 1 of 3

Akerlof, George A., Williams T. Dickens y George L. perry (1996), “The Macroeconomics of Low Inflation”, Brookings Papers on Economic Activity, 1. [OpenAIRE]

Álvarez, Javier y Manuel Arellano (2002), “The Time Series and CrossSection Asymptotics of Dynamic panel Data Estimators”, mimeo., Universidad de Alicante y CEMFI.

Anderson, Theodor W. y Cheng Hsiao (1981), “Estimation of Dynamic Models with Error Components”, Journal of the American Statistical Association, 76, pp. 598-606. [OpenAIRE]

Arellano, Manuel y Stephen Bond (1991), “Some Tests of Specification for panel Data: Monte Carlo Evidence and an Application to Employment Equations,” Review of Economic Studies, 58, pp. 277-297.

Baddeley, Michelle, Ron Martin y peter Tyler (2000), “Regional Wage Rigidity: The European Union and United States Compared”, Journal of Regional Science, 40(3), pp. 115-142.

Baltagi, Badi H. (2001), Econometric Analysis of Panel Data, 2a. ed., John Wiley and Sons, LTD.

Baltagi, Badi H., Blien, Uwe y Katja Wolf (2008), “New Evidence on the Dynamic Wage Curve for Western Germany: 1980-2004”, Institute for the Study of Labor (IZA), documento de debate 3433, abril. [OpenAIRE]

Banco de México (2002-2004), Informe trimestral de inflación.

Barth, Erling, B. Bratsberg, R. A. Naylor, y O. Raaum (2002), “Explaining Variations in Wage Curves: Theory and Evidence”, Department of Economics Memorandum, núm. 03/2002, University of Oslo. [OpenAIRE]

Blanchard, Oliver J. y Stanley Fischer (1989), Lectures on Macroeconomics, MIT press.

Blanchard, Oliver J. y Lawrence Katz (1999), “Wage Dynamics: Reconciling Theory and Evidence”, NBER Working Paper Series, 6924, febrero.

Blanchflower, David y Andrew Oswald (1994), The Wage Curve, MIT press. [OpenAIRE]

______ (2005), “The Wage Curve Reloaded,” NBER Working Paper Series, 11338, mayo.

Campa, José Manuel y Linda Goldberg (1998), “Employment versus Wage Adjustment and the U.S. Dollar”, mimeo., Federal Reserve Bank of New York. [OpenAIRE]

Card, David (1995), “The Wage Curve: A Review”, Journal of Economic Literature, xxx III, junio, pp. 785-799. [OpenAIRE]

32 references, page 1 of 3
Powered by OpenAIRE Research Graph
Any information missing or wrong?Report an Issue