Employment and Development: the Mexican Case

The aim of this paper is to present an independent paradigm of the interconnection between economic development and growth. It is written within a heterodox economic framework, and includes an analysis of power structures. The empirical evidence presented refers to Mexico. The paper consists of five sections. The first makes a critical revision of the various currents of economic thought with respect to their views on employment. We then proceed in the next two sections to present a theoretical position which, in our opinion, offers an original and novel approach to the treatment of employment, an analysis that emphasises what is known as the ‘social sector’ of the economy. In the fourth section, we present a global view of the employment situation in Latin America, thus arriving at the fifth section, where we apply our typology to the Mexican case. In the paper our analysis is supported by statistical data from Mexico. We stress that the employment problem is not just an economic problem, but one that also demands political solutions. These are fought out and decided upon within the existing power structure, primarily as a result of social conflicts which occur within society.