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Multinational Enterprises and Employment in Mexico

Author

Listed:
  • Filippo, Agustín
  • Guaipatín, Carlos
  • Navarro, Lucas
  • Willington, Ignacio
  • Wyss, Federico

Abstract

This paper examines the employment effects of multinational enterprises (MNEs) in Mexico, focusing on the labor market impacts of foreign tariff increases during 2018-2019. Using data from Mexicos National Survey of Occupations and Employment (ENOE) for 2014-2023 combined with sector-level tariff exposure measures based on Fajgelbaum et al. (2024), we construct a quarterly city-sector panel distinguishing employment in MNEs and domestic firms. We analyze employment outcomes across worker characteristics (education, age, gender) and firm attributes (size and location). Results indicate a positive employment effect in MNEs within the sectors most affected by the tariff increases, particularly for highly educated workers and small establishments. In contrast, there is no clear evidence of significant effects on wages.

Suggested Citation

  • Filippo, Agustín & Guaipatín, Carlos & Navarro, Lucas & Willington, Ignacio & Wyss, Federico, 2026. "Multinational Enterprises and Employment in Mexico," IDB Publications (Working Papers) 14619, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:14619
    DOI: http://dx.doi.org/10.18235/0014066
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    Keywords

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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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