Wages in crisis and in recovery

In spite of the negative effects of the crisis on economic activity and employment in Latin America, mean wages underwent real increases driven by adjustments to the minimum wage, in a context of decreasing inflation. This combination sustained domestic demand without affecting employment. In a context of economic recovery, an active minimum-wage policy will be a complement, sustaining consumption by the lowest-income wage-earners, and contributing to growth stability when future increases are in line with increases in mean productivity.