Abstract

FUJII G., Gerardo. Labor Flexibility and Employment in Mexico. Inv. Econ [online]. 1999, vol.59, n.229, pp.121-160. ISSN 0185-1667.

According to the neoclassical paradigm, unemployment is caused by inflexibility in the labor market. Governments of several countries in the world have endorsed this thesis, among with some belong to our continent, and by international financial institutions. The aim of this article is to examine the rigidity, which at present characterizes the Mexican labor market at four levels: wages, dismissals contractual forms and the working day by hour. The conclusion is reached that in general forms, the Mexican labor market cannot be characterized as being rigid. This is corroborated by the absence of a significant correlation between the variation of wages and employment. Briefly, the empirical data lead to doubt the affirmation that flexibility in the Mexican Labor Market is crucial to increasing the levels of employment and output which seem to depend more on economic growth pushed by aggregate demand.