Abstract

FUJII GAMBERO, Gerardo; CANDAUDAP, Luis Eduardo  and  GAONA, Claudia Ivette. Competitiveness and Unit Labor Cost in Mexican Manufacturing. Economía UNAM [online]. 2007, vol.4, n.10, pp.62-76. ISSN 1665-952X.

It has been said that one of the causes of the labor problems facing the developed economies stems from competition from the new industrialized countries which creates wage inequalities in the United States and unemployment in the European Union. This concern is transferred to middle-sized economies that export manufactured goods, arguing that Chinese competition destroys jobs and impedes wage hikes. This makes it necessary to change the basis for competitiveness from low wages to higher productivity. This article uses the Mexican case to investigate whether this change is actually taking place or not.