Wage Gaps for acquiring the Wellbeing Basket 2019-2023: The effects of the post-pandemic period

Resumen

This paper aims to analyze the changes in the purchasing power of wages in Mexico, ensuring that an average family can consume a Well-being Basket (WB). The WB was developed in 2019 by the International Observatory of Living Wages and consists of three components: food, food preparation, and non-food items. Unlike a basic basket, it includes goods and services that guarantee a dignified level of living, not just survival. The construction of the Basket follows a composite index methodology based on consumption weights, and comparisons use a Laspeyres index. The results show that despite the post-pandemic inflationary period, extraordinary increases in the minimum wage reduced the purchasing gap by 42%. However, this remains insufficient, making it necessary for this wage recovery policy to extend beyond a single presidential term.