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Effects Of Trade And Technology On The Mexican Labor Market
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Book Synopsis Effects of Trade and Technology on the Mexican Labor Market by :
Download or read book Effects of Trade and Technology on the Mexican Labor Market written by and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the effects of trade and technology on Mexico's laboral market during the 1994 - 2019 period. Regarding international trade, I analyze the implications of the exposure of local labor markets to greater trade integration under NAFTA and to greater competition from China in the US market. Regarding technology, I investigate the consequences of the exposure of local labor markets, with greater initial specialization in routine tasks, to automation. The main results show that trade integration under NAFTA promoted employment in Mexico throughout the different margins of adjustment considered (i.e. employment by demographic groups (gender, education level, and age); employment by occupation - task content crossed with demographic groups; and employment by sectors (manufacturing and non-manufacturing) crossed with occupation - task content), while it reduced unemployment and the non-participation rate. China's competition in the US market had the opposite effects on these labor market indicators. Women and the less educated were the most affected by both trade events. The analysis by sectors suggests that those markets susceptible to automation experienced a pattern of labor polarization. Finally, an exercise on the estimated beta coefficients shows that the main determinant of the investigated labor market indicators is trade (mainly NAFTA ) and not technology.
Book Synopsis US-Mexico Trade by : United States. Congress. Office of Technology Assessment
Download or read book US-Mexico Trade written by United States. Congress. Office of Technology Assessment and published by . This book was released on 1992 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays on the Local Labor Market Effects of Globalization by : Oscar Alejandro Mendez Medina
Download or read book Essays on the Local Labor Market Effects of Globalization written by Oscar Alejandro Mendez Medina and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of a series of papers studying the effect that globalization in its multiple forms has had on Mexican local labor markets. In Chapter 1, 'Trade Shocks and Mexican Local Labor Markets in the Great Recession', I study the role that international trade played in the transmission of the U.S. credit crisis to Mexican local labor markets. The economic opening process that Mexico started by opening up to international trade in the mid-1980s when it became a member of the GATT, and then reinforced in 1994 when NAFTA was enacted, has created a strong link between the business cycles of Mexico and the United States (Robertson, 2000). This trade-driven phenomenon has had significant consequences for Mexico's economic geography (Hanson, 1996). In particular, easier access to the U.S. market increased the level of dependence on exports to the U.S. for some Mexican municipalities. This increase in dependence was not homogenous throughout the country, mostly due to differences by municipality in transportation costs and industry specialization. This heterogeneity, plus the evolution of U.S. trade during the Great Recession (2007-2009), which involved a $40 billion drop in U.S. imports from Mexico, allows me to identify the role that these trade linkages played in the transmission of the crisis to Mexican local labor markets. I show that differences in manufacturing industry structure caused by Mexico's opening process have made a subset of Mexican municipalities especially vulnerable to economic events in the U.S. I find that Mexican regions that exported relatively more to the U.S. experienced large and significant differential effects when compared to municipalities more focused on the domestic market. Mexican regions with significant ties to the U.S. market experienced, during the crisis, a significantly larger decrease in employment and wages, and greater within local labor market adjustments than their less open counterparts, mainly characterized by large drops in manufacturing employment and significant increases in employment in the service and agricultural industries. Pursuing the same line of research, the second chapter of my dissertation explores 'The Effect of Chinese Import Competition on Mexican Local Labor Markets'. Recent estimates of the effect of globalization on labor markets have found that trade is having an increasingly larger impact on wage inequality. Particularly relevant is the "China Syndrome" study by Autor, Dorn, and Hanson (2013a), which presents evidence on the disruptive effects that import competition can have on a developed economy by estimating the impact that Chinese import competition had on U.S. local labor markets. One would expect to find that Chinese exports also had a large and significant effect on developing economies, particularly on those specialized in the production of labor-intensive goods. My paper contributes to the study of this relationship by analyzing the Mexican case. Following the methodology introduced in Autor et al. (2013a), I exploit variation across Mexican regions in import exposure stemming from initial differences in industry specialization in order to estimate the effect Chinese competition had on local Mexican labor markets. Also, by taking advantage of the Mexican exports' high dependence on the U.S. market, I estimate the effect that China-caused trade diversion had on Mexican labor markets. I find that the increase in competition decreased the employment share in manufacturing for the average Mexican local labor market. This effect was found to be larger for regions with high exposure to Chinese competition in the U.S. market, showing that there was a significant, negative indirect effect from China's trade growth. Workers' mobility also increased due to this negative shock. I name the third chapter 'Mexican Migrants' Response to a Trade Shock'. This study exploits the variation created by Chinese import competition across Mexican states and combines it with variation across U.S. states in their likelihood of receiving Mexican migrants in order to yield a causal estimate of the variation in the Mexican share of the labor force across U.S. states. The purpose of this study is both to determine whether international migration can be affected by external trade shocks, a topic very scantily studied in the economic literature of both trade and migration, and to open the doors to a study of migration effects on the receiving economy by using a plausibly exogenous shock to migration, as is the increase in import competition by China. I find that the increase in Mexican imports from China had a significant effect on Mexican workers' mobility towards the U.S. labor markets.
Book Synopsis The Labor Market, Productivity and the Role of International Trade in the Mexican Economy by : Lorenza Martínez Trigueros
Download or read book The Labor Market, Productivity and the Role of International Trade in the Mexican Economy written by Lorenza Martínez Trigueros and published by . This book was released on 1997 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis The Impact of a Free Trade Policy on the Mexican Manufacturing Labor Market by : Carolina Rangel
Download or read book The Impact of a Free Trade Policy on the Mexican Manufacturing Labor Market written by Carolina Rangel and published by . This book was released on 1997 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Employment and Wage Effects of Trade Liberalization by : Ana Revenga
Download or read book Employment and Wage Effects of Trade Liberalization written by Ana Revenga and published by World Bank Publications. This book was released on 1999 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: October 1995 Cuts in Mexico's tariff levels were associated with a slight decline in employment in Mexico and with increases in average wages (perhaps reflecting improved productivity in the reformed industries and a shift toward the use of more skilled workers). The wages and employment of skilled production workers were significantly more responsive to changes in protection levels than those of nonproduction workers. In 1985, after decades of an import-substitution industrial strategy, Mexico initiated a radical liberalization of its external sector. Between 1985 and 1988, import licensing requirements were scaled back to a quarter of earlier levels, reference prices were removed, and tariff rates on most products were substantially reduced. By 1989, Mexico was one of the most open economies in the developing world. Adjusting to trade liberalization required the reallocation of resources between sectors and entailed substantial dislocation of workers. Revenga analyzes how Mexico's trade liberalization (1985 - 87) affected employment and wages in industry, focusing on how it affected average employment and earnings rather than on the link between trade and relative wages. She examines the tradeoff between wage and employment adjustment, identifies which labor groups benefited more from liberalization, and tries to associate changes in employment and wages directly with measures of change in trade protection, rather than link them to changes in imports and exports (which is more common). She finds that reductions in quota coverage and tariff levels are associated with moderate reductions in firm-level employment. A 10-point reduction in tariff levels (between 1985 and 1990) is associated with a 2- to 3-percent decline in employment in Mexico. Changes in quota coverage appear to have no discernible effect on wages, but reductions in tariff levels are associated with increases in average wages. This seems to reflect improved productivity in the reformed industries, which may be related to a shift toward the use of more skilled workers. There seems to have been a slight shift in the skill mix in favor of nonproduction workers. This was paralleled by a sharper increase in the wage differential between skilled and unskilled workers. The wages and employment of skilled production workers were significantly more responsive to changes in protection levels than those of nonproduction workers -- perhaps partly because production workers were more heavily concentrated in the industries in which protection levels were greatly reduced. This paper -- a product of the Country Operations Division 1, Latin America and the Caribbean, Country Department II -- was prepared for the World Bank labor markets workshop held in July 1994.
Book Synopsis Employment and Wage Effects of Trade Liberalization by : Ana Revenga
Download or read book Employment and Wage Effects of Trade Liberalization written by Ana Revenga and published by . This book was released on 2016 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cuts in Mexico's tariff l ...
Book Synopsis The United States and Mexico by : Cathryn L. Thorup
Download or read book The United States and Mexico written by Cathryn L. Thorup and published by Transaction Publishers. This book was released on 1987-01-01 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: Rapid technological advance is fast changing the nature of the relationship between the industrial countries and the advanced developing countries. This volume explores the meanings of this change close to home-as it affects the U.S.-Mexican relationship. What is the impact of the new technology on trade, investment, and labor flows between the United States and Mexico? Will development of a stronger Mexican industrial sector constitute an aid or a threat to specific U.S. industries? While demand for the middle-technology goods that countries such as Mexico can produce is growing in the United States, the debt crisis and the high dollar make procuring the high-technology capital goods necessary for this effort difficult and expensive. An overview essay explores the impact of technological change upon conflicts between the economic and political objectives of the two countries and ways in which the coordination of national politics might be maximized. The authors--representing a mix of government and business experience in both countries--offer specific recommendations on improving the efficiency of bilateral economic interaction, reducing the adjustment costs of technological change, and avoiding diplomatic tensions between the nations. Policy analysts examine the bilateral implications of the development strategies pursued by Mexico and the United States, the role played by domestic interest groups in the formation of these strategies, and the impact of technological change in the labor force along the border. Industry specialists examine changes in the automotive industry, the electric and electronics industries, bio-technological change in agriculture and nutrition, and the pharmaceutical and pharmochemical industries. Cathryn L. Thorup is the director of the Overseas Development Council's U.S.-Mexico Project, a policy-oriented, Washington-based forum for the exchange of ideas among key actors in the bilateral relationship. She is the author of many articles on conflict management in the U.S. Mexican policies toward Central America. Between 1980 and 1982, Ms. Thorup wrote regularly on international politics for the Mexican news magazine, Ranoes.
Book Synopsis Trade and Employment in Mexico by : Jaime Behar
Download or read book Trade and Employment in Mexico written by Jaime Behar and published by . This book was released on 1988 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a study of the link between foreign trade and industrial employment in Mexico. A general conclusion is that Mexico's potential employment-gains from an expansion of manufactured exports are extremely low. Another is that this cannot be attributed to labour market distortions. the national level of analysis, the study focuses first on export patterns and policies while relating these issues to the current financial crisis. Econometric techniques and a model of balance of payments are applied. The main result is the policy efforts to stimulate manufactured export growth are efficacious for attaining external balance. Second, the export performance of the manufacturing sector is appraised in relation to the objective of employment generation. The results lend support to the hypothesis that Mexico will find its comparative advantages in the export expansion of modern industries which adopt high-technology production processes. Using imput-output techniques and skill data by industry, it is shown that growth in external demand has little to offer for the solution of the urban employment problem and to the objective of improving income distribution. the labour market of metropolitian monterrey, the capital city of the state of Nuevo Leon. An input-output model for Nuevo Leon is presented in this part of the study. By using survey and secondary data, interindustry flows and final demand sectors are estimated. A modified version of the supply-demand pool technique is then used to derive the matrix of regional input coefficients. Multiplier analysis is performed and the employment effects to the state's manufactured exports are estimated. In general, the results confirm the conclusion drawn at the national level of analysis, and illustrate the importance of considering regional variables when designing trade and employment policies.
Book Synopsis The Myth of Market Failure by : Peter Gregory
Download or read book The Myth of Market Failure written by Peter Gregory and published by . This book was released on 1986 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book takes sharp issue with the prevailing perception that Mexican employment conditions have not improved or have even deteriorated over time. It reveals a steady and substantial improvement in the earnings of workers at the bottom of the nonagricultural wage structure and shows that rural-urban migration has caused migrants' earnings to rise signinficantly and has not prevented the rise of urban unskilled wages in general. The findings indicate that estimates of the underutilization of labor are not only grossly exaggerated but also misleading for the formulation of employment policy. The author uses new information to estimate the flow of migrant labor to the United States. His examination of Mexican labor markets shows the unexpected importance of nonagricultural labor for rural household incomes. Finally, he assesses the impact on employment of the recent economic crisis and draws on lessons of the past to advance employment policy prescriptions for the future.
Book Synopsis Essays on Economic Policy and Labor Market Outcomes by : Zadia Maria Feliciano
Download or read book Essays on Economic Policy and Labor Market Outcomes written by Zadia Maria Feliciano and published by . This book was released on 1995 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays on the Effect of Trade and Location on the Gender-gap by : María Regina García-Cuéllar
Download or read book Essays on the Effect of Trade and Location on the Gender-gap written by María Regina García-Cuéllar and published by . This book was released on 2001 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis A Study of the Impact of a U.S.-Mexico Free Trade Agreement on Medium-term Employment, Wages, and Production in the United States by : Robert McCleery
Download or read book A Study of the Impact of a U.S.-Mexico Free Trade Agreement on Medium-term Employment, Wages, and Production in the United States written by Robert McCleery and published by . This book was released on 1991 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Technology, Trade, and Wage Inequality in Mexico Before and After NAFTA by : Gerardo Esquivel
Download or read book Technology, Trade, and Wage Inequality in Mexico Before and After NAFTA written by Gerardo Esquivel and published by . This book was released on 2003 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Welfare Effects of Trade Reform and Macroeconomic Conditions on Labor Market Outcomes and Poverty in Mexico by : Teena Marie Archuleta
Download or read book Welfare Effects of Trade Reform and Macroeconomic Conditions on Labor Market Outcomes and Poverty in Mexico written by Teena Marie Archuleta and published by . This book was released on 2004 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Labor Market Adjustment to Third Party Competition by : Raymond Robertson
Download or read book Labor Market Adjustment to Third Party Competition written by Raymond Robertson and published by . This book was released on 2018 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: China's exports reduce wages in importing countries, but few studies have looked at competition in third party markets. We examine labor market outcomes in Mexico's apparel and textile sectors associated with U.S. apparel and textile imports from China. Using data on U.S. imports in conjunction with quarterly Mexican labor force surveys, we show that U.S. imports from China are associated with a reduction of employment in Mexico's textile and apparel sectors. These effects are the most pronounced for the least educated. Wages were not impacted on net except for the poorest indicating stronger local labor market ties in the left tail of the wage distribution. Notably, reductions in labor demand due to reduced textile imports had spill-overs beyond these sectors. Finally, the effects of trade-induced demand shocks dissipate after about two quarters indicating low firm-level adjustment costs.
Book Synopsis Mexican Immigration to the United States by : George J. Borjas
Download or read book Mexican Immigration to the United States written by George J. Borjas and published by University of Chicago Press. This book was released on 2007-11-01 with total page 349 pages. Available in PDF, EPUB and Kindle. Book excerpt: From debates on Capitol Hill to the popular media, Mexican immigrants are the subject of widespread controversy. By 2003, their growing numbers accounted for 28.3 percent of all foreign-born inhabitants of the United States. Mexican Immigration to the United States analyzes the astonishing economic impact of this historically unprecedented exodus. Why do Mexican immigrants gain citizenship and employment at a slower rate than non-Mexicans? Does their migration to the U.S. adversely affect the working conditions of lower-skilled workers already residing there? And how rapid is the intergenerational mobility among Mexican immigrant families? This authoritative volume provides a historical context for Mexican immigration to the U.S. and reports new findings on an immigrant influx whose size and character will force us to rethink economic policy for decades to come. Mexican Immigration to the United States will be necessary reading for anyone concerned about social conditions and economic opportunities in both countries.
