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Significance

The changes, which afford such workers various benefits, were approved by all political parties. They were signed by President Claudia Sheinbaum and published in the Official Gazette of the Federation on December 24.

Impacts

To boost productivity, and real wages, the formal sector would need to expand significantly.

If wages increase price pressures appreciably, the Bank of Mexico may need to halt its loosening of monetary policy.

The government’s social policy will encourage businesses in the informal sector to remain there.

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