¡El Salario es de Quien Trabaja! : a methodology for living wage estimations in Mexico City

Abstract

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 and scale 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., in order to 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 and the Observatorio's work as bases. Results from this living wage estimation are comparable to the work already conducted by the University, but with greater efficiency and scalability. Overall, I find that only about 17 percent of three- and four-person households in Mexico City earn a living wage. Additionally, I find that most heads of living wage-earning households work in high-skill occupations and have high levels of educational attainment.