Mexico Is About to Find Out If Minimum Wage Raises Kill Jobs

[RandomGuy]

(Bloomberg) -- Economists debating the impact of a minimum wage on inequality, inflation and the jobless rate are about to get a ton of new evidence from Mexico.

The country is boosting its minimum wage 20% next year, an increase seven times faster than inflation, on top of a 16% jump this year.

The leftist government of President Andres Manuel Lopez Obrador is using the wage as a tool to fight poverty and inequality. This is a stark break from Mexico’s recent policies, when increases to the minimum salary barely topped inflation to help exporters to the U.S. keep costs down.

Before Lopez Obrador took office, Mexico’s minimum wage was the second-lowest among more than 30 countries in a study by the Organisation for Economic Co-Operation and Development as a proportion of what an average worker made. Only the U.S. was lower.

Economists are split on whether increases in the minimum wage hurt job creation.

Harvard University’s Gregory Mankiw, who used to chair the U.S. Council of Economic Advisers, has argued that it reduces job opportunities for unskilled workers. Nobel Laureate Paul Krugman says there’s no evidence that raising the minimum wage costs jobs.

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https://news.yahoo.com/mexico-minimu...120000805.html

[boutons_deux]

Gregory Mankiw is a conservative, so of course he would be against helping the poor.

They are to be crushed by Capitalism, The Expendables.

[koriwhat]

so from $1/day to $1.10/day...