Using Panel Data to Estimate the Effect of the North American Free Trade Agreement on Employment and Wages at the State Level
I determine the effect of NAFTA on employment and wages in the United States. I use a panel-data set of 50 states for 1980-2000, and a two-stage least squares, fixed effects model. I estimate equations for employment and wages. Empirical results indicate that NAFTA had a negative effect on employment and a positive effect on wages. Chow Test results suggest that there is a break in both the employment and wage relationships in 1994, the year NAFTA became effective.
Volume (Year): 37 (2006)
Issue (Month): 1 ()
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- Michael W. Klein & Scott Schuh & Robert K. Triest, 2003. "Job Creation, Job Destruction, and International Competition," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number jcjd, March.
- Willem Thorbecke & Christian Eigen-Zucchi, 2002. "Did NAFTA Cause a "Giant Sucking Sound"?," Journal of Labor Research, Transaction Publishers, vol. 23(4), pages 647-658, October.
- Michael W. Klein & Scott Schuh & Robert K. Triest, 2002. "Job creation, job destruction, and international competition: a literature review," Working Papers 02-7, Federal Reserve Bank of Boston.
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