Labour markets, human capital and inequality

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The minimum wage equals 86% of the median wage versus 50% in the OECD. Keeping it close to inflation and reducing non-wage labour costs further would reduce informality. Improving the quality and equity of education would raise human capital.
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Mexico needs to take further steps to reduce informality and encouraging more women to join the labour force. Labour informality is a pervasive characteristic of the Mexican economy and is a central concern for public policy, 57% of workers still operate in the informal sector.
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The planned welfare reforms need to be monitored to ensure that they encourage participation without adverse social outcomes. The liberalisation of university fees can enhance choice and quality but may adversely affect low-income students.
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