Economists get cold feet about high minimum wages

Illustration: Simon Bailly

Nov 20th 2025|Emeryville, London and Mexico City|8 min read

IN THE BARRIO of Iztapalapa, on Mexico City’s eastern flank, the pavements stay busy even in the punishing afternoon sun. Street vendors hawk snacks from metal carts; waiters from corner taquerías weave between tables and traffic; cashiers in the ubiquitous convenience stores ring up a steady stream of small purchases. Young adults in knock-off sportswear mingle with stooped, gap-toothed old folk. Outside a private-security firm, a sun-bleached façade is plastered with notices advertising for security guards at the legal minimum rate of 278.8 pesos ($15.20) per day.