ERIC Number: ED471925
Record Type: Non-Journal
Publication Date: 2003-Jan
Reference Count: N/A
Wages and Productivity in Mexican Manufacturing. Policy Research Working Paper.
A study examined determinants of wages and productivity in Mexico from 1993 and 1999 using two national surveys. In 1993, 7,619 employees from 575 firms were interviewed. In 1999, 6,259 employees from 722 firms were interviewed. Findings indicate that wage premiums and productivity increased with years of schooling, but workers had higher benefits from schooling than firms. Employers and employees benefitted the most from external training, whereas firms benefitted more from in-house training. Potential experience increased wages, but there were decreasing returns to potential experience. Workers benefitted more than firms from potential experience. Women were paid less than men in both years. Investment in men's education did not increase their wages or productivity to a level above women, but training did. There seemed to be no gender discrimination since wage differentials were explained by equal or larger productivity differentials. Union membership decreased wages across all sizes of firms, but union members were more productive than non-union members. In 1993 permanent workers earned less and were less productive than temporary workers. However, in 1999 permanent workers earned higher wages and were more productive than temporary workers. Foreign research and development and foreign ownership had a positive correlation with productivity and wages. The correlation of firm size with both wages and productivity was positive, but larger for productivity. Regional wage and productivity gaps increased over time. Three appendices explain the surveys and present variables and pooled estimation. (Contains 29 references.) (TD)
Descriptors: Educational Attainment, Educational Status Comparison, Foreign Countries, Industrial Training, Manufacturing Industry, National Surveys, Occupations, On the Job Training, Productivity, Salary Wage Differentials, Sex Differences, Unions, Wages
For full text: http//econ.worldbank.org/view.php?topic=10&type=5&id=23421.
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: World Bank, Washington, DC.
Identifiers - Location: Mexico
Identifiers - Laws, Policies, & Programs: North American Free Trade Agreement