Effect of the minimum wage on employment and the poor population in Mexico, 1980-2019

Abstract

This research seeks to contribute to the discussion and empirical evidence of the effects of the minimum wage on the main socio-economic factors. The objective was to determine how the behavior of the minimum wage has influenced formal employment and the population in poverty in Mexico, from 1980 to 2019. Two linear regression models were estimated, using the ordinary least squares method. From his estimation, a negative relationship was found between the minimum wage and the two dependent variables: formal employment, as well as with the population in wealth poverty.