¡El Salario es de Quien Trabaja! A Methodology for Living Wage Estimations in Mexico City
In September of 2018, a research team from the Observatorio de Salarios at the Iberoamerican University in Mexico City approached Dr. Amy Glasmeier to help systematize living wage estimates in Mexico. The goal was to emulate the MIT Living Wage Calculator, which Dr. Glasmeier created as a source for living wage estimates across the U.S., and establish a similar calculator for Mexico, beginning with a pilot study in Mexico City.
This thesis pilots an integrated methodology for systematizing and scaling living wage estimates in Mexico City, using the MIT Living Wage Calculator as a basis. Results from this estimation are comparable to work already conducted by the University, but with greater efficiency and scalability. Overall, I find that 17 percent of three- and four-person households in Mexico City earn a living wage. Additionally, most heads of living wage-earning households work in high-skill occupations and have high levels of educational attainment.