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Trade and Wages: Two Puzzles from Mexico

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  • Raymond Robertson

Abstract

Mexico plays an important role in the developing-country trade-liberalisation literature because it liberalised early and extensively. Numerous papers analysed changes in Mexican wage levels and inequality after Mexico joined the GATT in 1986. This paper reviews recent papers that analyse changes in wage levels and inequality since the North American Free Trade Agreement in 1994. Two main puzzles emerge. First, wage growth rates are similar before and after NAFTA. Second, Mexican wage inequality, which received much attention after its post-GATT rise, falls steadily after NAFTA. This paper reviews several possible explanations for these two phenomena. Copyright 2007 The Author Journal compilation 2007 Blackwell Publishing Ltd .

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Bibliographic Info

Article provided by Wiley Blackwell in its journal World Economy.

Volume (Year): 30 (2007)
Issue (Month): 9 (09)
Pages: 1378-1398

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Handle: RePEc:bla:worlde:v:30:y:2007:i:9:p:1378-1398

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Cited by:
  1. Gerardo Esquivel, 2010. "The dynamics of income inequality in Mexico since NAFTA," Serie documentos de trabajo del Centro de Estudios Económicos 2010-09, El Colegio de México, Centro de Estudios Económicos.
  2. Raymundo M. Campos-Vazquez & Gerardo Esquivel & Nora Lustig, 2012. "The Rise and Fall of Income Inequality in Mexico: 1989-2010," Serie documentos de trabajo del Centro de Estudios Económicos 2012-04, El Colegio de México, Centro de Estudios Económicos.
  3. Harris, Richard G. & Robertson, Peter E., 2013. "Trade, wages and skill accumulation in the emerging giants," Journal of International Economics, Elsevier, vol. 89(2), pages 407-421.
  4. Tello, Claudia & Ramos, Raul & Artís, Manuel, 2012. "Changes in Wage Structure in Mexico Going Beyond the Mean: An Analysis of Differences in Distribution, 1987-2008," IZA Discussion Papers 6576, Institute for the Study of Labor (IZA).
  5. Raymundo M. Campos Vazquez & Andres Hincapie & Ruben Irvin Rojas-Valdes, 2012. "Family Income Inequality and the Role of Married Females' Earnings in Mexico: 1988-2010," Serie documentos de trabajo del Centro de Estudios Económicos 2012-08, El Colegio de México, Centro de Estudios Económicos.
  6. Robert A. Blecker & Gerardo Esquivel, 2010. "NAFTA, Trade and Development (Robert A. Blecker and Gerardo Esquivel)," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 11(4), pages 17-30, December.
  7. Blecker, Robert A. & Esquivel, Gerardo, 2010. "NAFTA, Trade, and Development," University of California at San Diego, Center for U.S.-Mexican Studies qt07f5g232, Center for U.S.-Mexican Studies, UC San Diego.
  8. Amoroso, Nicolás & Chiquiar, Daniel & Ramos-Francia, Manuel, 2011. "Technology and endowments as determinants of comparative advantage: Evidence from Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 22(2), pages 164-196, August.
  9. Benedikt Heid & Mario Larch & Alejandro Riaño, 2011. "Maquiladoras and Informality: A Mixed Blessing," CESifo Working Paper Series 3689, CESifo Group Munich.
  10. Garduno-Rivera, Rafael, 2010. "Effect of NAFTA on Mexico's Income Distribution in the Presence of Migration," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61895, Agricultural and Applied Economics Association.
  11. Jordaan, Jacob A., 2011. "FDI, Local Sourcing, and Supportive Linkages with Domestic Suppliers: The Case of Monterrey, Mexico," World Development, Elsevier, vol. 39(4), pages 620-632, April.

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