IDEAS home Printed from https://ideas.repec.org/a/ucp/jlabec/v15y1997i3ps20-43.html
   My bibliography  Save this article

Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing

Author

Listed:
  • Revenga, Ana

Abstract

This article analyzes the effect of trade liberalization on employment and wages in the Mexican manufacturing sector. The study documents that many of the rents generated by trade protection were absorbed by workers in the form of a wage premium. Trade liberalization affected firm-level employment and wages by shifting down industry product and labor demand. This in itself may have accounted for a 3-4 percent decline in real wages on average. But trade reform also reduced the rents available to be captured by firms and workers. This had an additional negative effect on firm-level employment and wages. Copyright 1997 by University of Chicago Press.

Suggested Citation

  • Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 20-43, July.
    • Handle: RePEc:ucp:jlabec:v:15:y:1997:i:3:p:s20-43
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0734-306X%28199707%2915%3A3%3CS20%3AEAWEOT%3E2.0.CO%3B2-O&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JOLE for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Finis Welch, 1969. "Linear Synthesis of Skill Distribution," Journal of Human Resources, University of Wisconsin Press, vol. 4(3), pages 311-327.
    2. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    3. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-538, May.
    4. Claudia Goldin & Robert A. Margo, 1992. "The Great Compression: The Wage Structure in the United States at Mid-Century," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 1-34.
    5. repec:bla:econom:v:45:y:1978:i:179:p:235-50 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Janet Currie & Ann Harrison, 2022. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 2, pages 15-42, World Scientific Publishing Co. Pte. Ltd..
    2. Gruber, Jonathan, 1997. "The Incidence of Payroll Taxation: Evidence from Chile," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 72-101, July.
    3. Bell, Linda A, 1997. "The Impact of Minimum Wages in Mexico and Colombia," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 102-135, July.
    4. Suen, Wing, 1997. "Decomposing Wage Residuals: Unmeasured Skill or Statistical Artifact?," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 555-566, July.
    5. MacIsaac, Donna & Rama, Martin, 1997. "Determinants of Hourly Earnings in Ecuador: The Role of Labor Market Regulations," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 136-165, July.
    6. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    7. Alison L. Booth, 2006. "The Glass Ceiling in Europe: Why Are Women Doing Badly in the Labour Market?," CEPR Discussion Papers 542, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    8. Eva Rueckert, 2003. "Bootstrapping the European Gender Wage Gap," Working Papers E04, Department of Economics, School of Management and Languages, Heriot Watt University.
    9. Hugo Ñopo, 2006. "The Gender Wage Gap in Chile 1992-2003 from a Matching Comparisons Perspective," Research Department Publications 4463, Inter-American Development Bank, Research Department.
    10. Robert A. Margo, 1993. "Explaining Black-White Wage Convergence, 1940-1950: The Role of the Great Compression," NBER Historical Working Papers 0044, National Bureau of Economic Research, Inc.
    11. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1169-1213.
    12. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2011. "The Gender Pay Gap in Austria: Tamensi Movetur!," WIFO Working Papers 394, WIFO.
    13. Melanie Jones & Ezgi Kaya, 2024. "Performance‐related pay and the UK gender pay gap," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(4), pages 512-529, October.
    14. Emanuela Ghignoni & Marilena Giannetti & Vincenzo Salvucci, 2022. "The double "discrimination" of foreign women: A matching comparisons approach," Working Papers in Public Economics 225, Department of Economics and Law, Sapienza University of Roma.
    15. Sile Padraigin O'Dorchai, 2008. "Do women gain or lose from becoming mothers?," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 51(2/3), pages 243-268.
    16. Töpfer, Marina, 2017. "Detailed RIF Decomposition with Selection - The Gender Pay Gap in Italy," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168422, Verein für Socialpolitik / German Economic Association.
    17. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2007. "The effects of competition and equal treatment laws on gender wage differentials [‘Models of job discrimination’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 22(50), pages 236-287.
    18. Steve Bradley & Colin Green & John Mangan, 2015. "Gender Wage Gaps within a Public Sector: Evidence from Personnel Data," Manchester School, University of Manchester, vol. 83(4), pages 379-397, July.
    19. Angel López-Nicolás & Jaume García & Pedro J. Hernández, 2001. "How wide is the gap? An investigation of gender wage differences using quantile regression," Empirical Economics, Springer, vol. 26(1), pages 149-167.
    20. Paternostro, Stefano & Sahn, David E., 1999. "Wage determination and gender discrimination in a transition economy : the case of Romania," Policy Research Working Paper Series 2113, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:v:15:y:1997:i:3:p:s20-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JOLE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.