The Salary and Wage Inequality Effect on Productivity on the Mexico-US Border

Abstract

In today's global economy, emerging economies play a very important role in the production chain. Countries such as China and India have become competitive participants in the global market. The labor force in these emerging markets has developed new skills, leading developed economies such as the United States to move important areas of their production chain into these countries. This phenomenon had reached Mexico as well and multiple cases of salary and wage inequality could be found. Thus, this research tries to establish a frame that could help better understand the effect that salary and wage inequality play in the leadership-productivity relation among middle management supervisors within the manufacturing industry at the Mexico-US border. A questionnaire was developed and applied to middle management supervisors on both sides of the border (Mexico and the US). The main contribution of this study is to help better understand the impact of salary and wage inequality among middle management supervisors.