ECLAC: Improving minimum wages helps to reduce inequality | Division for Inclusive Social Development (DISD)

Gradual increases in the minimum wage help to reduce inequality and do not have significant adverse effects on aggregate employment, according to the Economic Commission for Latin America and the Caribbean (ECLAC), which was taking part in a forum on the subject that began on 5 Aug in Mexico City.

In a message read out at the opening of this International forum on minimum wages, employment, inequality and economic growth, the Executive Secretary of ECLAC, Alicia Bárcena, highlighted the "enormous potential of minimum wage policy to improve the income of the most disadvantaged, promote equality and strengthen internal demand" as this contributes to economic development.

Chancellor of UNAM, José Narro, called for macroeconomic achievements to be balanced with the country's microeconomic needs, and said that all sectors should be involved in achieving a situation that reduces inequality and poverty.

In terms of major social agreements, Antonio Prado, Deputy Executive Secretary of ECLAC, mentioned ECLAC's proposal for the region's countries to conclude compacts for labor equality that include programmes aimed at narrowing gaps in productivity, labor income and employment quality.

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