Assessing the effect of international visitors on the creation of precarious employment in Mexico

Resumen

This document assesses the relationship between the arrival of international visitors and the so-called rate of critical occupancy conditions (RCOC) during the period from the first quarter of 2005 to the first quarter of 2023. The RCOC is designed to measure inappropriate labor conditions concerning remuneration and working time. A quantitative analysis was performed by using a Dynamic Ordinary Least Squares (DOLS) model, which considers the RCOC as the dependent variable, and the arrival of international visitors and Mexico’s real GDP as independent variables. The main results show that, in the long term, the RCOC positively responds to variations in the number of international visitors. Meanwhile, in the short term, the arrival of international visitors has a negative effect on the RCOC.