Sacrifice rate and labor precariousness in Mexico, 2005Q1-2019Q4
Since 1998, the Mexican economy has clearly presented six disinflationary episodes. We estimate seven Phillips curves, to evaluate the social cost in terms of the sacrifice rate in GDP, unemployment rate and in the Rate of Critical Labor Conditions (RCLC). Our results suggest that, by including lab...
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| Format: | Article |
| Language: | English |
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Universidad Nacional de Colombia
2022-12-01
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| Series: | Cuadernos de Economía |
| Subjects: | |
| Online Access: | https://revistas.unal.edu.co/index.php/ceconomia/article/view/92783 |
| _version_ | 1811176761159843840 |
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| author | Eduardo Loría Raúl Cossio |
| author_facet | Eduardo Loría Raúl Cossio |
| author_sort | Eduardo Loría |
| collection | DOAJ |
| description |
Since 1998, the Mexican economy has clearly presented six disinflationary episodes. We estimate seven Phillips curves, to evaluate the social cost in terms of the sacrifice rate in GDP, unemployment rate and in the Rate of Critical Labor Conditions (RCLC). Our results suggest that, by including labor precariousness in the New Keynesian Phillips Curve, measured with RCLC, inflation behavior is more accurately modeled. We found that there are important cointegration relationships that reflect that for 2005Q1-2019Q4 labor precariousness has been the main disinflationary adjustment variable, since 1 point reduction in inflation corresponds to an increase of 3.65 points in RCLC.
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| first_indexed | 2024-04-10T19:57:08Z |
| format | Article |
| id | doaj.art-63893eefe37a46c097ba910c0181abc6 |
| institution | Directory Open Access Journal |
| issn | 0121-4772 2248-4337 |
| language | English |
| last_indexed | 2024-04-10T19:57:08Z |
| publishDate | 2022-12-01 |
| publisher | Universidad Nacional de Colombia |
| record_format | Article |
| series | Cuadernos de Economía |
| spelling | doaj.art-63893eefe37a46c097ba910c0181abc62023-01-27T15:32:26ZengUniversidad Nacional de ColombiaCuadernos de Economía0121-47722248-43372022-12-01418710.15446/cuad.econ.v41n87.92783 Sacrifice rate and labor precariousness in Mexico, 2005Q1-2019Q4Eduardo Loría0Raúl Cossio1Universidad Nacional Autónoma de MéxicoUniversidad Nacional Autónoma de México Since 1998, the Mexican economy has clearly presented six disinflationary episodes. We estimate seven Phillips curves, to evaluate the social cost in terms of the sacrifice rate in GDP, unemployment rate and in the Rate of Critical Labor Conditions (RCLC). Our results suggest that, by including labor precariousness in the New Keynesian Phillips Curve, measured with RCLC, inflation behavior is more accurately modeled. We found that there are important cointegration relationships that reflect that for 2005Q1-2019Q4 labor precariousness has been the main disinflationary adjustment variable, since 1 point reduction in inflation corresponds to an increase of 3.65 points in RCLC. https://revistas.unal.edu.co/index.php/ceconomia/article/view/92783new keynesian phillips curvelabor precariousnessunemploymentdisinflationcointegrationARDL |
| spellingShingle | Eduardo Loría Raúl Cossio Sacrifice rate and labor precariousness in Mexico, 2005Q1-2019Q4 Cuadernos de Economía new keynesian phillips curve labor precariousness unemployment disinflation cointegration ARDL |
| title | Sacrifice rate and labor precariousness in Mexico, 2005Q1-2019Q4 |
| title_full | Sacrifice rate and labor precariousness in Mexico, 2005Q1-2019Q4 |
| title_fullStr | Sacrifice rate and labor precariousness in Mexico, 2005Q1-2019Q4 |
| title_full_unstemmed | Sacrifice rate and labor precariousness in Mexico, 2005Q1-2019Q4 |
| title_short | Sacrifice rate and labor precariousness in Mexico, 2005Q1-2019Q4 |
| title_sort | sacrifice rate and labor precariousness in mexico 2005q1 2019q4 |
| topic | new keynesian phillips curve labor precariousness unemployment disinflation cointegration ARDL |
| url | https://revistas.unal.edu.co/index.php/ceconomia/article/view/92783 |
| work_keys_str_mv | AT eduardoloria sacrificerateandlaborprecariousnessinmexico2005q12019q4 AT raulcossio sacrificerateandlaborprecariousnessinmexico2005q12019q4 |