Causes of the salary levels in the Mexican automotive industry three years after the USMCA
Vol 8, Issue 6, 2024
VIEWS - 1251 (Abstract)
Abstract
The United States, Mexico, and Canada (USMCA) seek to promote fair wages and adequate working conditions, especially in Mexico, by strengthening labor rights and freedom of association. The objective of this research is to determine the factors that influence salary levels in the Mexican Automotive Industry (MAI), through a causality analysis in the Granger sense, to generate a panorama that allows a decision-making process in the Mexican salary policy. With data from the National Institute of Statistics and Geography, the Bank of Mexico and Statista, autoregressive vector models were estimated to determine causalities in the Granger sense. It was proven that minimum wage, employed personnel, production, total sales, and exports are some causes of remuneration in the sector, with the minimum wage being the most significant. The above suggests that the salary increase involves several actors, such as the government (minimum wage), the organization (production, sales and exports) and the market (employed personnel), therefore, the design of appropriate labor policies will contribute to the dignification of salaries inside the MAI.
Keywords
Full Text:
PDFReferences
- Akaike, H. (1974). A new look at the statistical model identification. IEEE Transactions on Automatic Control, 19(6), 716–723. https://doi.org/10.1109/tac.1974.1100705
- Alarcón M., G y Domínguez V., M. E. (2014). Differences in industrial labor remuneration in Mexico, reality, data and space (Spanish). Revista internacional de estadística y geografía, 5(1), 52-75.
- Bijoya Neog, B & Barua, M. (2014). Factors Influencing Employee’s Job Satisfaction: An Empirical Study among Employees of Automobile Service Workshops in Assam. The Standard International Journals Transactions on Industrial, Financial & Business Management, 2(7), 305-316.
- Bravo P., J. M. (2020). Multiplier analysis of the minimum wage increase in the Northern Border Region: a Bi-regional Input-Output Matrix Analysis (Spanish). Tesis Maestría, Tijuana, B. C., México.
- Campos Vázquez, R. M., & Rodas Milián, J. A. (2020). The lighthouse effect of the minimum wage on the wage structure: evidence from Mexico (Spanish). El Trimestre Económico, 87(345), 51–97. https://doi.org/10.20430/ete.v87i345.859
- Carrillo, J., García J., H y Bensusán, G. (2021). Productive dynamism and wages in the Mexican automotive industry (Spanish). En Humberto García-Jiménez Jorge Carrillo Graciela Bensusán Salarios en tiempos de libre comercio ¿Ofrece la industria automotriz salarios dignos en México? (coordinadores). P.60.
- Casalombo, C. A. U. (2018). Relationship between the size of the informal economy and the business sector in Ecuador: Evidence of cointegration and Granger causality (Spanish). Revista de Métodos Cuantitativos para la Economía y la Empresa, 225.
- Cavanaugh, J. E., & Neath, A. A. (2019). The Akaike information criterion: Background, derivation, properties, application, interpretation, and refinements. WIREs Computational Statistics, 11(3). Portico. https://doi.org/10.1002/wics.1460
- CEPAL. (2015). Economic Commission for Latin America, Economic Survey of Latin America and the Caribbean 2015 (Spanish). Santiago de Chile, CEPAL.
- CEPAL. (2017). Economic Commission for Latin America, Brechas, ejes y desafíos en el vínculo entre lo social y lo productivo, Santiago, Chile, ECLAC (Spanish). Available online: https://repositorio.cepal.org/bitstream/handle/11362/42209/S1700769_es.pdf?sequence=1&isAllowed=y (accessed on 17 April 2024).
- Ciaschi, M., Galeano, L., & Gasparini, L. (2021). Productive structure and wage inequality: evidence from Latin America (Spanish). El Trimestre Económico, 88(349), 77–106. https://doi.org/10.20430/ete.v88i349.1078
- Constitución Política de los Estados Unidos Mexicanos. (2023). Title Six—Labor and Social Security (Spanish). Available online: https://mexico.justia.com/federales/constitucion-politica-de-los-estados-unidos-mexicanos/titulo-sexto/ (accessed on 17 April 2024).
- Covarrubias V., A. (2019). Mexico’s competitive advantage in NAFTA: a case of social dumping from the perspective of the automotive industry (Spanish). Norteamérica, 14(1), 89-118. https://doi.org/10.22201/cisan.24487228e.2019.1.340
- Covarrubias V., A. (2021). The T-MEC and the third generation of labor arrangements. Likely scenarios for regional labor and industry (Spanish). Norteamérica, 16(1), 147-190. https://doi.org/10.22201/cisan.24487228e.2021.1.470
- Covarrubias V., A. y Bouzas, A. (2016). Employment and union policies in the Mexican automotive industry (Spanish). Fundación Friedrich Ebert.
- Cramarenco, R. E., Burcă-Voicu, M. I., & Dabija, D. C. (2023). The impact of artificial intelligence (AI) on employees’ skills and well-being in global labor markets: A systematic review. Oeconomia Copernicana, 14(3), 731–767. https://doi.org/10.24136/oc.2023.022
- De la Luz Tovar, C., & Pineda Salazar, S. I. (2023). Regional analysis of wage discrimination of indigenous workers in Mexico (Spanish). Nóesis. Revista de Ciencias Sociales, 32(64), 42–72. https://doi.org/10.20983/noesis.2023.2.3
- Figueroa Hernández, E., Pérez Soto, F., & Godínez Montoya, L. (2022). Purchasing power of wages by subsector of economic activity in Mexico, 1994-2019 (Spanish). Business Innova Sciences, 3(2), 7–21. https://doi.org/10.58720/bis.v3i2.93
- Fuentes, N. A., Brugués Rodríguez, A., González König, G., et al. (2020). Economic impact on the maquiladora industry and the northern border region of Mexico due to the 100% minimum wage hike (Spanish). Región y Sociedad, 32, e1230. https://doi.org/10.22198/rys2020/32/1230
- García, H., Carrillo, J., & Bensusán, G. (2022). Wage precariousness in the automotive industry in Mexico. Pending gaps before the new labor governance of the T-MEC (Spanish). Norteamérica, 17(2). https://doi.org/10.22201/cisan.24487228e.2022.2.559
- Granger, C. W. J. (1969). Investigating Causal Relations by Econometric Models and Cross-spectral Methods. Econometrica, 37(3), 424. https://doi.org/10.2307/1912791
- Kolk, A., & van Tulder, R. (2006). Poverty alleviation as business strategy? Evaluating commitments of frontrunner Multinational Corporations. World Development, 34(5), 789–801. https://doi.org/10.1016/j.worlddev.2005.10.005
- Lazaroiu, G., & Rogalska, E. (2023). How generative artificial intelligence technologies shape partial job displacement and labor productivity growth. Oeconomia Copernicana, 14(3), 703–706. https://doi.org/10.24136/oc.2023.020
- Linares Z., J. (2019). Labor reform in the framework of NAFTA-TMEC. The case of the automotive industry in Mexico (Spanish).
- Mendoza-Velazquez, A., Santillana, J. A., Zárate-Mirón, V. E., et al. (2018). Labor congestion in the automotive cluster: the role of wages. Competitiveness Review: An International Business Journal, 28(4), 386–407. https://doi.org/10.1108/cr-10-2016-0071
- Novales, A. (2011). Vector autoregressive models (VAR) (Spanish). Universidad Complutense, 1-26.
- ONU. (2022a). United Nations. Sustainable Development Goals and Targets-Sustainable Development. Sustainable Development (Spanish). Available online: https://www.un.org/sustainabledevelopment/es/objetivos-de-desarrollo-sostenible/ (accessed on 17 April 2024).
- ONU. (2022b). United Nations. Living Wage—business & Human Rights navigator (Spanish). Available online: https://bhr-navigator.unglobalcompact.org/issues/salario-digno/?lang=es (accessed on 17 April 2024).
- Ortiz, A., Guerra, P., Barragán, J. & Villalpando, P. (2019). Analysis of the new Labor Reform in Mexico, 2019: Who benefits and who harms? (Spanish). Revista Daena (International Journal of Good Conscience), 14(2).
- Ovando A., W; Román S., Y. G; Salgado V., M. del C. (2018). Part-time work and wage inequality in the manufacturing industry in Mexico (2005-2015) (Spanish). Ciencia ergo-sum, 25(3). https://doi.org/10.30878/ces.v25n3a3
- Pearson, K. (1895). Note on regression and inheritance in the case of two parents. (1895). Proceedings of the Royal Society of London, 58(347–352), 240–242. https://doi.org/10.1098/rspl.1895.0041
- Pindyck, R. S., y Rubinfeld, D. L. (2009). Microeconomía. Prentice Hall. p 694.
- Reis, F., Gomes da Silva, V. P. (2012). Japanese management and salary productivity: the case of the electronic and automotive industries in Portugal. The International Journal of Human Resource Management, 23(11), 2256-2267. https://doi.org/10.1080/09585192.2011.605070
- Ruiz, M. A., Pardo, A., San Martín, R. (2010). Structural equation modeling. Psychologist Papers (Spanish). 31(1), 34-45.
- Sánchez G., K. E. (2023). Determinants of wage levels in the automotive terminal industry in Mexico (Spanish). Norteamérica, 18(1). https://doi.org/10.22201/cisan.24487228e.2023.1.599
- Sempere, J., (2022). Has free trade theory failed? A critical review of trade treaty theory (Spanish). Foro internacional, 62(3), 609-637. Epub. https://doi.org/10.24201/fi.v62i3.2633
- T-MEC. (2020). Final texts of the Agreement between Mexico, the United States and Canada (T-MEC) (Spanish). Available online: https://www.gob.mx/t-mec/acciones-y-programas/textos-finales-del-tratado-entre-mexico-estados-unidos-y-canada-t-mec-202730?state=published (accessed on 17 April 2024).
- Van Tulder, R. (2008). The Role of Business in Poverty Reduction Towards a Sustainable Corporate Story? Ginebra, United Nations Research Institute for Social Development (UNRISD).
- Yuliati, L., Wilhelm Smith, P. A., & Prasetyaningtyas, S. W. (2023). The Influence of Flexible Working Hours, Work From Home, Work Stress, and Salary on Employee Performance at PT Armada Auto Tara during COVID-19 Pandemic. Quantitative Economics and Management Studies, 4(3), 402–413. https://doi.org/10.35877/454ri.qems1619
DOI: https://doi.org/10.24294/jipd.v8i6.4289
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 Cesaire Chiatchoua, Carlos Ernesto Luquez Gaitan, Ernest Yasser Nuñez Betancourt
License URL: https://creativecommons.org/licenses/by/4.0/
This site is licensed under a Creative Commons Attribution 4.0 International License.