Determinants of Wage Levels in Mexico's Automotive Terminal Industry

Abstract

This paper examines the factors of stage of establishment, region of destination, country of origin and union as determinants of the annual integrated wage of unionized workers through the analysis of the collective bargaining agreements of the year 2019 for 20 automotive assembly companies.  Kruskal Wallis analysis and Dunn-Bonferroni tests are used to determine whether wage differences existed. The findings show that from the third stage of establishment wages decreased. The central and northern regions displayed high wages, but western and central-northern regions displayed low wages. In the case of companies of European origin, they displayed high wages, while Asian companies displayed low wages; in unions of FESEBS higher wages and FNSI low wages.