Immigration
The Impact of Minimum Wages in MexicoIn Mexico, low levels of compliance and ineffective levels of minimum wages imply negligible employment effects. There are diverging views about how minimum wages affect labor markets in developing countries. Advocates of minimum wages hold that they redistribute resources in a welfare-enhancing way, and can thus reduce poverty, improve productivity, and foster growth. Opponents, on the other hand, contend that minimum wage interventions result in a misallocation of labor and lead to depressed wages in the very sectors --- the rural and informal urban sectors --- where most of the poor are found, with the effect of wasting resources and reducing the growth rate. Data from Mexico provide an opportunity to evaluate the impact of minimum wages. In Mexico, minimum wages have had virtually no effect on wages or emp
Beginning in the late 1990s an increasing number of plants were located right along the Mexico-U. They work six days a week in grueling 10 hour shifts with very few breaks. As a result, significant numbers of workers are paid at or below minimum wages. The main reason: the minimum wage is not an effective wage for most firms or workers. With organizational help, conditions are beginning to improve and the outlook of the border plants is getting better. In 2000, some four thousand plants employed approximately 1. Although by this time it seems as though everything was running smoothly, the maquiladora industry found itself in the midst if many problems, thus suffering greatly ever since.
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Acceptance Essays
