IDEAS home Printed from https://ideas.repec.org/p/oec/traaab/129-en.html
   My bibliography  Save this paper

Trade and Occupational Employment in Mexico since NAFTA

Author

Listed:
  • Raymundo Miguel Campos-Vázquez

    (Center for Economic Studies, El Colegio de México)

  • José Antonio Rodríguez-López

    (University of California)

Abstract

We analyze the effects of trade liberalization on Mexican employment at an occupational level for the period from 1992 to 2009, ranking occupations by skill level. We find that the reduction in trade costs associated with Mexico's entry to NAFTA is related to larger employment expansions in low-skill occupations. This evidence runs counter to a story of skilled-biased technological change in Mexico, and in favour of a heterogeneous-firm model of trade in tasks where the offshoring cost of an occupation is positively related to its skill level. After NAFTA, labour demand for unskilled workers has increased and labour demand for skilled workers has been stagnant, even though supply of skilled workers has increased in the last 20 years. We provide intuitive evidence to identify a number of relevant bottlenecks in the Mexican economy that may be associated with these developments.

Suggested Citation

  • Raymundo Miguel Campos-Vázquez & José Antonio Rodríguez-López, 2011. "Trade and Occupational Employment in Mexico since NAFTA," OECD Trade Policy Papers 129, OECD Publishing.
  • Handle: RePEc:oec:traaab:129-en
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1787/5kg3nh5q7p5k-en
    Download Restriction: no

    More about this item

    Keywords

    employment; inclusive growth; trade; wages;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:oec:traaab:129-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/tdoecfr.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.