A spatial analysis of precariousness and the gender wage gap in Mexico, 2005–2018

The North American Free Trade Agreement (NAFTA) between Canada, Mexico, and the USA (1994–2018) has led to a reorganization of the productive structure of Mexico’s 32 metropolitan areas, affecting what jobs are offered in the country’s regions. This includes tertiary activity, which determines most employment in metropolitan areas. Most employment in this sector, however, is more precarious than in the secondary sector. Additionally, women participate in this sector more than men, exacerbating wage inequality. Based on data from the National Survey of Occupation and Employment (ENOE in Spanish), we analyze the income gap in Mexico’s metropolitan areas. We find that inequality is exacerbated in less developed areas in which the tertiary sector predominates. Moreover, the decrease in the labor gap is caused by the precariousness of working conditions.