Economists get cold feet about high minimum wages

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.