Adjustment, Poverty and Employment in Mexico by Araceli Damian

Author:Araceli Damian [Damian, Araceli]
Language: eng
Format: epub
Tags: Social Science, General, Sociology
ISBN: 9781351749145
Google: KlM8DwAAQBAJ
Publisher: Routledge
Published: 2017-11-01T04:38:27+00:00

Source: Own calculations based on table 4.A.9, statistical appendix to this chapter.

* The average hours worked in the reference week was calculated as follows: the middle point of each range of number of hours worked was multiplied by the percentage of workers of each range of hours worked. The average number of hours represents the sum of the values obtained in each range of hours worked. In order to test the consistency of these figures, the average number of hours worked was calculated based on ENEU database, INEGI, 1986, 1989 and 1994 (see table 4A.7.1, statistical appendix to this chapter).

Based on the information of number of hours worked in the reference week, I calculated the equivalent labour force participation rates, which were explained above when such rates were presented for the country level22 (table 4.2). Table 4.6 shows that between 1979 and 1987 (for years 1980–1986 this equivalent rate could not be calculated) the equivalent rate decreased (from 40.7 per cent to 39.0 per cent), while the non-adjusted participation rate rose (from 50.5 per cent to 51.6 per cent). I contended, when analysing table 4.4, that, after 1982, participation rates have been positively associated with economic growth. Equivalent participation rates are also associated positively with economic growth. From 1979 to 1987, a period during which per capita GDP decreased, equivalent participation rates decreased as well (table 4.6). During the 1987–1988 sub-period, per capita income stagnated and the equivalent rates stagnate as well. From 1988 to 1993 equivalent rates grew very quickly (an increase from 39.5 per cent in 1988, to 43.1 per cent in 1993) during a period in which per capita income grew steadily (except in 1993). Therefore, there seems to be an almost perfect and positive association between these variables, which confirms the non-validity of interpretations which assume households were able to increase their working effort during periods of economic recession, thus postulating the counter-cyclical nature of participation rates.

Table 4.6. Mexico City. Labour force participation rates (LFPR) and equivalent LFPR, 1979, 1987–1993

Year

Labour force participation rates

Equivalent participation rates*

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