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Endogenous Skill Acquisition and Export Manufacturing in Mexico

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  • David Atkin

Abstract

This paper presents empirical evidence that the growth of export manufacturing in Mexico during a period of major trade reforms, the years 1986-2000, altered the distribution of education. I use variation in the timing of factory openings across municipalities to show that school dropout increased with local expansions in export manufacturing. The magnitudes I find suggest that for every twenty jobs created, one student dropped out of school at grade 9 rather than continuing through to grade 12. These effects are driven by the least-skilled export-manufacturing jobs which raised the opportunity cost of schooling for students at the margin.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18266.

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Date of creation: Aug 2012
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Handle: RePEc:nbr:nberwo:18266

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Citations

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Cited by:
  1. Majlesi, Kaveh, 2014. "Labor Market Opportunities and Women's Decision Making Power within Households," Working Papers 2014:4, Lund University, Department of Economics.
  2. Mauro Caselli, 2014. "Trade, skill-biased technical change and wages in Mexican manufacturing," Applied Economics, Taylor & Francis Journals, vol. 46(3), pages 336-348, January.
  3. Majlesi, Kaveh, 2014. "Demand for Low-Skilled Labor and Parental Investment in Children's Education: Evidence from Mexico," Working Papers 2014:5, Lund University, Department of Economics.
  4. Juhn, Chinhui & Ujhelyi, Gergely & Villegas-Sanchez, Carolina, 2014. "Men, women, and machines: How trade impacts gender inequality," Journal of Development Economics, Elsevier, vol. 106(C), pages 179-193.
  5. Carl Davidson & Nicholas Sly, 2013. "A Simple Model of Globalization, Schooling and Skill Acquisition," CESifo Working Paper Series 4394, CESifo Group Munich.
  6. William W. Olney, 2013. "The Composition of Exports and Human Capital Acquisition," Department of Economics Working Papers 2013-18, Department of Economics, Williams College, revised Sep 2013.
  7. Blanchard, Emily & Willmann, Gerald, 2011. "Escaping a protectionist rut: Policy mechanisms for trade reform in a democracy," Journal of International Economics, Elsevier, vol. 85(1), pages 72-85, September.
  8. Augsburg, B. & Haas, R. de & Harmgart, H. & Meghir, C., 2013. "Microfinance and Poverty Alleviation," Discussion Paper 2013-075, Tilburg University, Center for Economic Research.
  9. Britta Augsburg & Ralph De Haas & Heike Harmgart & Costas Meghir, 2012. "The Impacts of Microcredit: Evidence from Bosnia and Herzegovina," NBER Working Papers 18538, National Bureau of Economic Research, Inc.
  10. Manisha Shah & Bryce Millett Steinberg, 2013. "Drought of Opportunities: Contemporaneous and Long Term Impacts of Rainfall Shocks on Human Capital," NBER Working Papers 19140, National Bureau of Economic Research, Inc.
  11. Feng Hu, 2013. "Does migration benefit the schooling of children left behind?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(2), pages 33-70, July.

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