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How Correlated are Mexico’s Salaries and Us Output? an Inquiry on Some Us Border Cities

Author

Listed:
  • Cortez, Willy Walter

    (Department of Quantitative Methods, University of Guadalajara.)

  • Islas-Camargo, Alejandro

    (Department of Statistics, Instituto Tecnológico Autónomo de México.)

Abstract

In this essay we pursue the question about the nature of integration that there is between the Mexican cities’ labor market located along the northern border and the US economy. We also inquiry whether there has been any change in such a relationship over time. Using the Hodrick-Prescott filter we are able to establish the short and long term behavior of the wage rates in the four largest US Border Mexican cities. We find that there has been a change in the nature of the relationship between the cyclical components of the Mexican labor income and US output. We also find some evidence about growth convergence within northern border Mexican labor incomes. / En este escrito abordamos la naturaleza de la integración entre el mercado laboral de ciudades mexicanas, ubicadas en la frontera norte, con la economía de los Estados Unidos de América. También indagamos sobre los cambios que se han presentado en la relación a lo largo del tiempo. Al utilizar el filtro Hodrick-Prescott se puede establecer el comportamiento de corto y largo plazos de las tasas salariales, en las cuatro ciudades mexicanas más grandes de la frontera norte. Encontramos que hubo un cambio en la relación entre los componentes cíclicos del ingreso laboral en México con el producto de los Estados Unidos de América. Asimismo, se observó alguna evidencia de convergencia en el crecimiento de los ingresos laborales en la frontera norte de México.

Suggested Citation

  • Cortez, Willy Walter & Islas-Camargo, Alejandro, 2009. "How Correlated are Mexico’s Salaries and Us Output? an Inquiry on Some Us Border Cities," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(08), pages 35-62, primer se.
  • Handle: RePEc:ipn:panora:v:iv:y:2009:i:08:p:35-62
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Labor income; labor market integration; US-Mexico border; Hodrick-Prescott filter. / Ingreso laboral; integración del mercado laboral; frontera México-EUA; filtro Hodrick-Prescott.;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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