México´s labor law and labor unions in the 1990´s

Abstract

IN THIS STUDY WE ANALYZED SOME OF THE FACTORS THAT SEEMLY PREVENTED MEXICAN LABOR MARKETS FROM THE ADJUSTMENT THAT WAS SUPPOSED TO BRING FORTH HIGH RATES OF EMPLOYMENT, PRODUCTIVITY ENHANCEMENTS, AND WELL REMUNERATED WAGES AND SALARIES. IN PARTICULAR, WE ANALYZED MEXICO´S LABOR LAW AND THE COUNTRY´S LABOR UNIONS. OUR FOREMOST CONCLUSION IS THAT MEXICO SHOULD MAKE A DECISIVE EFFORT TO BRING THE NATION´S LABOR LEGISLATION IN LINE WITH MARKET CONDITIONS. FINALLY, AT THE AGGREGATE LEVEL, WE PERFORMED AN ECONOMETRIC ANALYSIS FROM 1960 TO 1995, WHICH SUGGESTS THAT MEXICAN LABOR UNIONS IMPINGE ON THE COUNTRY´S ECONOMIC GROWTH. THE NEW HUMAN CAPITAL AND GROWTH THEORY PROVIDED THE FRAMEWORK FOR THE ECONOMETRIC ESTIMATION.