A long process of free‐market reforms and gradual democratization seems to be dismantling Mexico's corporatist system of labor representation. A thorough analysis of the country's corporatist institutions yields theoretical reasons to believe that Mexico's practice of labor relations is indeed changing. An empirical examination of the nation's labor congress and ruling party during the two previous presidential administrations (1988–2000) demonstrates that corporatism is being transformed at a practical level, although the process of reform has been complex and uneven at best. The continuing strength of an officialist labor sector will complicate the task of establishing a new system of labor representation, a problem that may have important implications for future democratic consolidation.

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A long process of free-market reforms and gradual democratization seems to be dismantling Mexico's corporatist system of labor representation. A thorough analysis of the country's corporatist institutions yields theoretical reasons to believe that Mexico's practice of labor relations is indeed changing. An empirical examination of the nation's labor congress and ruling party during the two previous presidential administrations (1988)(1989)(1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000) demonstrates that corporatism is being transformed at a practical level, although the process of reform has been complex and uneven at best. The continuing strength of an officialist labor sector will complicate the task of establishing a new system of labor representation, a problem that may have important implications for future democratic consolidation. lthough the electoral victory by Vicente Fox of the Partido de Acci6n

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