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Globalization and Mexican labor markets

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Author Info
Raymond Robertson
Abstract

North American economic integration has had potentially positive implications for Mexican workers, and the perceived competition between Mexican and U.S. workers may not be as accurate as popularly believed. However, the net gains from integration may overshadow important losses for many workers. These losses explain persistent popular opposition to NAFTA and economic integration. ; Three main policy recommendations emerge from these studies. First, Mexico would continue to benefit, on net, from increased economic integration. Second, to the extent possible, Mexico should work to reduce migration restrictions into the United States. Third, the Mexican government should continue to direct adjustment assistance to rural and less economically active areas. Recent research has shown that workers in these areas are especially susceptible to shocks and that workers in more economically dynamic regions suffer much less from adjustment and job loss.

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Article provided by Federal Reserve Bank of Dallas in its journal Proceedings.

Volume (Year): (2006)
Issue (Month): ()
Pages: 61-80
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Handle: RePEc:fip:feddpr:y:2006:p:61-80

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Keywords: Emigration and immigration ; International trade ; Globalization ; Mexico ; Labor market;

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  1. Haskel, Jonathan & Slaughter, Matthew, 1998. "Does the Sector Bias of Skill-Biased Technical Change Explain Changing Wage Inequality?," CEPR Discussion Papers 1940, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Beyer, Harald & Rojas, Patricio & Vergara, Rodrigo, 1999. "Trade liberalization and wage inequality," Journal of Development Economics, Elsevier, vol. 59(1), pages 103-123, June. [Downloadable!] (restricted)
  3. Peri, Giovanni & Ottaviano, Gianmarco I. P., 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," Working Papers 05-8, University of California at Davis, Department of Economics. [Downloadable!]
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  4. Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S20-43, July. [Downloadable!] (restricted)
  5. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," NBER Working Papers 12885, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Gordon H. Hanson & Raymond Robertson & Antonio Spilimbergo, 2002. "Does Border Enforcement Protect U.S. Workers From Illegal Immigration?," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 73-92, February. [Downloadable!] (restricted)
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  7. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126. [Downloadable!] (restricted)
  8. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November. [Downloadable!] (restricted)
  9. Gustavo Gonzaga & Naércio Menezes Filho & Cristina Terra, 2006. "Trade Liberalization and the Evolution of Skill Earnings Differentials in Brazil," Development Working Papers 216, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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  10. Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October. [Downloadable!] (restricted)
  11. Robertson, Raymond, 2004. "Relative prices and wage inequality: evidence from Mexico," Journal of International Economics, Elsevier, vol. 64(2), pages 387-409, December. [Downloadable!] (restricted)
  12. Prachi Mishra, 2006. "Emigration and Wages in Source Countries: Evidence from Mexico," IMF Working Papers 06/86, International Monetary Fund. [Downloadable!]
  13. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May. [Downloadable!] (restricted)
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