Arturo Pérez Mendoza (Tecnológico de Monterrey, Campus Ciudad de México)
Abstract
This paper shows a search model to analyze the possible impact of a trade liberalization on job creation and job destruction. The model is calibrated to calculate the possible impact of the North American Free Trade Agreement on the Mexican economy. The results shows that the effects of NAFTA take place in the first two years. The production and the employment have a reduction of 0.14 and 0.16 percent, respectively, while the welfare level increases in 1.07%. The job creation and job destruction increases, and therefore there exist a higher job reallocation between sectors.
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Article provided by El Colegio de México, Centro de Estudios Económicos in its journal Estudios Económicos.
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