Increase in the minimum wage in 2024: its effects and conditions in the Mexican labor market

During the current administration, minimum wage increases have averaged 20%. On December 1, 2023, CONASAMI announced that the minimum wage increase will be 20% for 2024, the same as in 2023. This is contrary to the 12% estimate by COPARMEX and within the range estimated by some analysts between 15% and 20%. Based on estimates of labor supply and demand, this report presents the effects of this situation on the labor market. In particular, it is noted that worker evaluations and government subsidies are key to ensuring that the 20% minimum wage increase does not significantly impact performance.