Can Maquila Booms Reduce Poverty? Evidence from Honduras
AbstractThis paper identifies and estimates the strength of the reduction in poverty linked to improved opportunities for women in the expanding maquila sector. A simulation exercise shows that, at a given point in time, poverty in Honduras would have been 1.5 percentage points higher had the maquila sector not existed. Of this increase in poverty, 0.35 percentage points is attributable to the wage premium paid to maquila workers, 0.1 percentage points to the wage premium received by women in the maquila sector, and 1 percentage point to employment creation. Given that female maquila workers represent only 1.1 percent of the active population in Honduras, this contribution to poverty reduction is significant.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4789.
Length: 23 pages
Date of creation: 01 Dec 2008
Date of revision:
Trade liberalization; maquila; poverty; gender wage gap; Honduras;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-14 (All new papers)
- NEP-DEV-2009-02-14 (Development)
- NEP-LAB-2009-02-14 (Labour Economics)
- NEP-LAM-2009-02-14 (Central & South America)
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- Denise Stanley, 2010. "Outmigration, Human Development and Trade: A Central American Case Study," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 11(2), pages 315-337.
- Lopez-Acevedo, Gladys & Robertson, Raymond, 2012. "The Promise and Peril of Post-MFA Apparel Production," World Bank - Economic Premise, The World Bank, issue 84, pages 1-4, May.
- Calfat, Germán & Rivas, Ana, 2008. "Fragmentation, income, gender and poverty linkages: The case of the Maquila Industry in Guatemala," IOB Working Papers 2008.02, Universiteit Antwerpen, Institute of Development Policy and Management (IOB).
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