Employment shifts, economic reform and the changes in public/private sector wages in Mexico: 1987-1997

Jose Pagan, Jorge Valero Gil, José A. Tijerina Guajardo

Research output: Contribution to journalArticle

Abstract

Over the last decade, the public sector in Mexico experienced substantial fiscal reform, divestiture of public enterprises, and the elimination of many regulations affecting pay and employment. This study analyzes the changes in the public/private sector differences in wages during the 1987-1997 period. The results from analyzing microdata from the Encuesta Nacional de Empleo Urbano show that relative public sector wages increased from 1987 to 1997. Most of the relative wage increase in the public sector can be explained by increases in the price of skills and by changes in sorting across sectors. The results have important public policy implications since they suggest that public sector workers earn more and their wages have grown faster than those of their private sector counterparts. As such, policies contemplating public sector reform should take into account the effect of these measures on the inter-sectoral income distribution and the overall economic growth.

Original languageEnglish (US)
Pages (from-to)447-460
Number of pages14
JournalEmpirical Economics
Volume27
Issue number3
DOIs
StatePublished - Jul 2002

Fingerprint

Public Sector
Wages
economic reform
wage
private sector
public sector
Sector
Mexico
Economics
wage increase
public enterprise
Income Distribution
Public Policy
reform
Economic Growth
income distribution
Sorting
Elimination
economic growth
public policy

Keywords

  • Earnings
  • Mexico
  • Public sector
  • Wage structure

ASJC Scopus subject areas

  • Economics and Econometrics
  • Mathematics (miscellaneous)
  • Statistics and Probability
  • Social Sciences (miscellaneous)

Cite this

Employment shifts, economic reform and the changes in public/private sector wages in Mexico : 1987-1997. / Pagan, Jose; Gil, Jorge Valero; Tijerina Guajardo, José A.

In: Empirical Economics, Vol. 27, No. 3, 07.2002, p. 447-460.

Research output: Contribution to journalArticle

Pagan, Jose ; Gil, Jorge Valero ; Tijerina Guajardo, José A. / Employment shifts, economic reform and the changes in public/private sector wages in Mexico : 1987-1997. In: Empirical Economics. 2002 ; Vol. 27, No. 3. pp. 447-460.
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