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The Impact of Minimum Wages in Mexico In Mexico, low levels of compliance and ineffective levels of minimum wages imply negligible employment effects. There are diverging views about how minimum wages affect labor markets in developing countries. Advocates of minimum wages hold that they redistribute resources in a welfare-enhancing way, and can thus reduce poverty, improve productivity, and foster growth. Opponents, on the other hand, contend that minimum wage interventions result in a misallocation of …

…their extremely low wage, drive off workers and pilots them towards U.S. immigration. However, awareness is growing, and it is the key to preventing further abuse of workers and less immigration problems. With organizational help, conditions are beginning to improve and the outlook of the border plants is getting better. These improvements will be slow in coming but each one represents one step closer to ideal working conditions and an improved effect on immigration.