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The labor market of the maquiladora in Mexico is an oligopsony. Effect of the new international division of labor

Author

Listed:
  • Pedro Alberto Herrera Ledesma

    (Universidad Politécnica de Victoria, México.)

  • Monica Lorena Sánchez Limón

    (Universidad Autónoma de Tamaulipas, México.)

  • Diana Marien Escobar Angulo

    (Universidad Autónoma de Tamaulipas, México.)

  • Oscar Armando Esparza del Villar

    (Universidad Autónoma de Ciudad Juárez, México.)

Abstract

This article demonstrates through qualitative and quantitative evidence that the labor market in the Mexican maquiladora industry is an oligopsony. Therefore, eight classic symptoms of this type of imperfect market would be explained and proven herein. The information that supports this evidence was obtained by means of documentary review, through in-depth interviews and by means of structural equations. Field research was conducted in three different cities of the country, for a period of more than a decade (2005-2017), including periods of crisis as well as periods of expansion of the industry. It is concluded that the oligopsonic character of the labor market in the maquiladora industry is an ingredient of the new international division of labor, caused by the expansionism of capitalism in peripheral countries.

Suggested Citation

  • Pedro Alberto Herrera Ledesma & Monica Lorena Sánchez Limón & Diana Marien Escobar Angulo & Oscar Armando Esparza del Villar, 2019. "The labor market of the maquiladora in Mexico is an oligopsony. Effect of the new international division of labor," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, vol. 51(2), pages 45-72, Julio-Dic.
    • Handle: RePEc:ety:journl:v:51:y:2019:i:2:p:45-72
    DOI: 10.24275/ETYPUAM/NE/512019/Herrera
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    Keywords

    Maquiladora; labor market; oligopsony; new international division of labor; expansion of capitalism.;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • F0 - International Economics - - General
    • P0 - Political Economy and Comparative Economic Systems - - General

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