Abstract

RODRIGUEZ PEREZ, Reyna Elizabeth  and  GERMAN-SOTO, Vicente. Gender Wage Gap and Business Cycle in Mexican Manufacturing. Econ: teor. práct [online]. 2021, n.54, pp.61-88.  Epub July 02, 2021. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/542021/rodriguez.

The cyclical relationship of wages and the wage gap by gender is analyzed with six macroeconomic variables from the manufacturing sector in Mexico during 1993.1-2017.3. Theory suggests that the wage gap narrows in recessions and widens during the expansive (procyclical) phase of the cycle. This hypothesis is tested using the H-P filter, to measure the cycle, and the Oaxaca-Blinder methodology, to estimate the wage gap. The data comes from the National Survey of Urban Employment (ENEU), period 1993-2004 and the National Survey of Occupation and Employment (ENOE), period 2005-2017). The results indicate that wages and the wage gap are procyclical vis-à-vis production, investment, exports and unit costs, but are more volatile and have longer fluctuations. Furthermore, they are countercyclical with labor productivity and inflation. Some gender inequality policy implications are provided.

Keywords : Gender Economics; gender wage gap; business cycle; labor; manufacturing; household survey; E32; J16; J21; J31.