ABSTRACT
At the end of 2023, a 20% increase in the minimum wage for Mexico was announced. For some workers, this increase represents a lower value and others may value it above their expectations. Companies know the different evaluations of workers; What they cannot identify are the types of workers who value said increase less or more. From this random scenario, we apply an asymmetric game theory model to analyze its implications in the Mexican labor market. The analysis yields three Nash equilibria: a pair of them, for each type of worker and a third, considering an average worker according to the beliefs observed by the company. A worrying result is that Nash equilibria show lower wages compared to normal conditions, a result that could help authorities to incorporate, in addition to random scenarios, different behaviors of the agents involved (companies and workers) in their labor policy. ABSTRACTAt the end of 2023, a 20% increase in the minimum wage for Mexico was announced. For some workers, this increase represents a lower value and others may value it above their expectations. Companies know the different evaluations of workers; What they cannot identify are the types of workers who value said increase less or more. From this random scenario, we apply an asymmetric game theory model to analyze its implications in the Mexican labor market. The analysis yields three Nash equilibria: a pair of them, for each type of worker and a third, considering an average worker according to the beliefs observed by the company. A worrying result is that Nash equilibria show lower wages compared to normal conditions, a result that could help authorities to incorporate, in addition to random scenarios, different behaviors of the agents involved (companies and workers) in their labor policy.ABSTRACTAt the end of 2023, a 20% increase in the minimum wage for Mexico was announced. For some workers, this increase represents a lower value and others may value it above their expectations. Companies know the different evaluations of workers; What they cannot identify are the types of workers who value said increase less or more. From this random scenario, we apply an asymmetric game theory model to analyze its implications in the Mexican labor market. The analysis yields three Nash equilibria: a pair of them, for each type of worker and a third, considering an average worker according to the beliefs observed by the company. A worrying result is that Nash equilibria show lower wages compared to normal conditions, a result that could help authorities to incorporate, in addition to random scenarios, different behaviors of the agents involved (companies and workers) in their labor policy.
ABSTRACTAt the end of 2023, a 20% increase in the minimum wage for Mexico was announced. For some workers, this increase represents a lower value and others may value it above their expectations. Companies know the different evaluations of workers; What they cannot identify are the types of workers who value said increase less or more. From this random scenario, we apply an asymmetric game theory model to analyze its implications in the Mexican labor market. The analysis yields three Nash equilibria: a pair of them, for each type of worker and a third, considering an average worker according to the beliefs observed by the company. A worrying result is that Nash equilibria show lower wages compared to normal conditions, a result that could help authorities to incorporate, in addition to random scenarios, different behaviors of the agents involved (companies and workers) in their labor policy.