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Employment Responses of Skilled and Unskilled Workers at Mexican Maquiladoras: The Effects of External Factors

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  • Mollick, André Varella

Abstract

Summary This paper compares a standard labor demand model to another augmented by the real exchange rate (RER) when studying the growth of dynamic Mexican maquiladoras from 1990 to 2006. The basic question is whether the real value of the peso changes the responses of employment to wages and to capital. In the augmented models, skilled labor employment becomes very sensitive to its own wages. Also, the user cost of capital has a larger negative impact on skilled employment, and a weaker currency has a negative impact on unskilled employment only. Overall, skilled labor benefits relatively more under globalization.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 7 (July)
Pages: 1285-1296

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:7:p:1285-1296

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: employment labor demand maquiladoras Mexico real exchange rate;

References

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Cited by:
  1. Doan, Thi Hong Thinh & Gente, Karine, 2014. "Real exchange rate and productivity in a specific-factor model with skilled and unskilled labour," Journal of Macroeconomics, Elsevier, vol. 40(C), pages 1-15.
  2. Aviral Kumar Tiwari, 2011. "A structural VAR analysis of renewable energy consumption, real GDP and CO2 emissions: Evidence from India," Economics Bulletin, AccessEcon, vol. 31(2), pages 1793-1806.
  3. Mehta, Aashish & Mohr, Belinda Acuña, 2012. "Economic Liberalization and Rising College Premiums in Mexico: A Reinterpretation," World Development, Elsevier, vol. 40(9), pages 1908-1920.
  4. Aviral Kumar TIWARI, 2011. "Energy Consumption, Co2 Emission and Economic Growth: A Revisit of the Evidence from India," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).

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