How the First Woman Elected as Mexico’s President May Change the Economic Future for Mexican Women
Gabriela Castro
June 2024
Mexico held its general election on June 2nd, 2024.[4] The election included voting for the next candidate to hold office for the six-year presidential term following the term of current Mexican President Andrés Manuel López Obrador (AMLO for short).[4] It was announced that Gloria Sheinbaum of Mexico’s left-wing National Regeneration Movement (Movimiento Regeneración Nacional or MORENA in Spanish) political party won in a landslide, holding about 59.5% of citizens’ votes.[10][1]
In addition to being the first woman elected as Mexico’s president, Sheinbaum holds the highest number of votes in the country’s presidential election history (35.9 million), exceeding current President Obrador’s record of 30.1 million votes in 2018.[1]
Sheinbaum has built her campaign on a myriad of pledges which she has outlined in her agenda,“100 Steps for Transformation.”[13] Many of these pledges are a continuation of AMLO’s political focus, but Sheinbaum is also notably focused on furthering social and economic progress not attributable to her predecessor.[8][13] What exactly are the specifics of these policy changes and how could they change the status quo and economic stability for women?
Raising the Minimum Wage
During his presidency, AMLO has set forth policies to increase minimum wage.[15] He established a minimum wage of 88 pesos (5 US dollars) per day in 2018 with a goal of reaching a minimum wage of 15 USD by the end of his term in 2024.[15] As of 2024, the general minimum wage in Mexico is 248.93 pesos per day (13.48 US dollars) and the minimum wage in the nation’s northern border is 375 pesos per day (20.31 US dollars).[14][5]
Sheinbaum has outlined plans to continue to raise the minimum wage by 11% annually during her term as president.[13] This means that by 2030, Mexico’s general minimum wage would increase to 465.60 pesos per day and 701.41 pesos per day in Mexico’s northern border region.[13][14] This is the equivalent of earning $25.22 and $37.99 daily in the U.S. today.[5]
Raising the minimum wage is critical for Mexico’s “informal workers,” which are employees who work jobs that do not require many skills–such as formal education or extensive training–and are not taxed or subject to government supervision.[12] In essence, this is akin to freelance work, only it is crucial for many households.[2][6]
Given what is known about the nature of informal work, increasing the minimum wage during Sheinbaum’s term would benefit women significantly. Informal work is historically pervasive among women in Mexico.[2] Recently, it was estimated that 56% of women are informal workers.[6] Additionally, informal work is less likely to be voluntary for women than men.[2] This is due to the fact that cutbacks in public sector jobs and lower wages for men force women–particularly those who are older or less educated–into the informal workforce in an effort to supplement and diversify family income.[2] Not only is involuntary work underpaid, but women who are either self-employed and work independently or self-employed while employing other workers still earn considerably less wages than women who are formally employed.[2] The higher market value set on labor due to an increased minimum wage can have the effect of not only increasing income for women who work informally, but also improving standards for those who work formally and women who are self-employed.
Formalizing Informal Labor
On top of informal workers not having labor rights or protection, they also are often not granted social security, pension plans, insurance, access to health care, or paid time off.[12] Informal workers make up 54.5% of Mexico’s workforce.[6] While experts have recommended changing this to allow for growth, there has been a dearth of efforts to actually formalize labor.[7]
Sheinbaum plans to change this by formalizing informal work.[3] This means expanding social security so that it is accessible to informal workers, which can incentivize informal workers to apply to roles which may grant them many benefits which were previously only available to those who work in formal roles.[3] Given that women are the most precarious members of the informal workforce, having social benefits improves prospects in regards to meeting their personal needs.[2]
Offering Pensions
Many older Mexicans cannot retire because they lack retirement savings.[12] Sheinbaum intends to mitigate the issues associated with retirement by providing a partial pension to women ages 60 to 64, equivalent to half of that administered to those 65 and older.[9] This helps assuage financial burden and stress for women who otherwise would be dependent on their spouse, children, or extended family to assist them in older age as their needs may grow. Needless to say, bolstering retirement for women through pensions is one example of the many social benefits that can transform the lives of women at different stages of life.
Takeaways
Sheinbaum trailblazed her way to becoming the first woman elected as president in Mexico’s 200 year history.[11] Multiple policy focuses in her strategic policy agenda, “100 Steps for Transformation,” can advance the way women grow economically and socially.[13] By increasing minimum wage, formalizing freelance work, and expanding pensions, Sheinbaum has the potential to increase standard of living for informal working women, formally working women, self-employed women, and older women who are susceptible to financial hardship. While promising, Sheinbaum’s plan should be enacted as soon as possible to realize the economic freedom Sheinbaum seeks to cultivate for women from all walks of life.
References
[1] Arroyo, L. (2024, June 3). Datos | Sheinbaum, la presidenta más votada en la historia reciente de México. El País México. https://elpais.com/mexico/elecciones-mexicanas/2024-06-03/datos-sheinbaum-la-presidenta-mas-votada-en-la-historia-de-mexico.html
[2] Biles, J. J. (2008). Informal Work and Livelihoods in Mexico: Getting By or Getting Ahead?nformal Work and Livelihoods in Mexico: Getting By or Getting Ahead?∗. The Professional Geographer, 60(4), 541–555. https://doi.org/10.1080/00330120802288743
[3] Dong, Wenchao. (2024, June 14). Top Issues on New President of Mexico’s Labor and Employment Agenda. HRPolicy. https://www.hrpolicy.org/insight-and-research/resources/2024/hr_workforce/public/06/top-issues-on-new-president-of-mexico%e2%80%99s-labor-and/
[4] Elección Federal 2024. (2024). Instituto Nacional Electoral. https://ine.mx/voto-y-elecciones/elecciones-2024/eleccion-federal-2024/
[5] Guagenti, C. (2024, June 14). MXN to USD: Convert Mexican Peso To United States Dollar. Forbes Advisor. https://www.forbes.com/advisor/money-transfer/currency-converter/mxn-usd/
[6] INDICADORES DE OCUPACIÓN Y EMPLEO (206/24). (2024). National Institute of Statistics and Geography. https://www.inegi.org.mx/contenidos/saladeprensa/boletines/2024/IOE/IOE2024_03.pdf
[7] Informal employment in Mexico: Current situation, policies and challenges. (n.d.). International Labor Organization.
[8] Ioanes, E. (2024, June 2). What to know about Claudia Sheinbaum, Mexico’s next president. Vox. https://www.vox.com/politics/353131/claudia-sheinbaum-amlo-lopez-obrador-mexico-elections-politics-morena-pri-pan
[9] Motwani, A. (2024, June 3). Claudia Sheinbaum’s Vision for the Future of Work in Mexico. Mexico Business. https://mexicobusiness.news/talent/news/claudia-sheinbaums-vision-future-work-mexico
[10] NEWS WIRES. (2024, June 3). Ruling leftist party candidate Sheinbaum elected Mexico’s first female president. France 24. https://www.france24.com/en/americas/20240603-sheinbaum-set-to-win-mexico-election-becoming-first-female-president
[11] Rivers, M. (2024, June 3). “Presidenta! Presidenta!” chants fill victory party as 1st female president elected: ANALYSIS. ABC News. https://abcnews.go.com/International/presidenta-presidenta-chants-fill-victory-party-1st-female/story?id=110772353
[12] Rodriguez Diaz, A. (2023, February 21). How Labor Informality in Mexico Hinders Socioeconomic Progress. HU Econ Review. https://www.economicsreview.org/post/how-labor-informality-in-mexico-hinders-socioeconomic-progress
[13] Sheinbaum proposes double-digit minimum wage increases through 2030. (2024, June 5). América Economía. http://www.americaeconomia.com/en/politics/sheinbaum-proposes-double-digit-minimum-wage-increases-through-2030
[14] Suárez, K. (2023, December 1). El salario mínimo en México aumentará un 20% en 2024. El País México. https://elpais.com/mexico/2023-12-01/el-salario-minimo-en-mexico-aumentara-un-20-en-2024.html
[15] White, K. (2024, January 8). Mexico increases minimum wage by 20% in 2024. https://info.siteselectiongroup.com/blog/mexico-increases-minimum-wage-by-20-in-2024
