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Effects of manufacturing dynamics on returns to education in the North of Mexico

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  • Caamal Olvera, Cinthya G.

Abstract

This paper examines the pattern of the labor market appraisal of workers’ schooling, focusing on the Northern regions of the country. The manufacturing industry is studied in particular since a large part of the economic activity is located in the North, relative to the rest of the country’s regions. The change in the manufacturing industry has been affected by international shocks, trade agreement regulations and the entrance of stronger competitors with a supply of low-skill workers, such as Asian countries. Quantile estimation results show that the labor market valued less the additional years of education acquired by workers over the period from 1988 to 2011. Results show that workers at the lowest part of the distribution are the ones who seem to be most affected in terms of education investment by the decline of manufacturing activity in the Northern region.

Suggested Citation

  • Caamal Olvera, Cinthya G., 2013. "Effects of manufacturing dynamics on returns to education in the North of Mexico," MPRA Paper 55211, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:55211
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    File URL: https://mpra.ub.uni-muenchen.de/55211/1/MPRA_paper_55211.pdf
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    References listed on IDEAS

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    1. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 35-78.
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    3. Omar Arias & Walter Sosa-Escudero & Kevin F. Hallock, 2001. "Individual heterogeneity in the returns to schooling: instrumental variables quantile regression using twins data," Empirical Economics, Springer, vol. 26(1), pages 7-40.
    4. Giuliani, Elisa & Pietrobelli, Carlo & Rabellotti, Roberta, 2005. "Upgrading in Global Value Chains: Lessons from Latin American Clusters," World Development, Elsevier, vol. 33(4), pages 549-573, April.
    5. Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb..
    6. Peracchi, Franco, 2006. "Educational Wage Premia and the Distribution of Earnings: An International Perspective," Handbook of the Economics of Education, Elsevier.
    7. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    8. Robertson, Raymond, 2004. "Relative prices and wage inequality: evidence from Mexico," Journal of International Economics, Elsevier, vol. 64(2), pages 387-409, December.
    9. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
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    Citations

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    Cited by:

    1. Abdelkrim Araar & Luis Huesca, 2014. "Comparison of the Tax System Progressivity Over Time: Theory and Application with Mexican Data," Cahiers de recherche 1419, CIRPEE.
    2. Luis Huesca Reynoso & Abdelkrim Araar, 2016. "Comparison of fiscal system progressivity over time: theory and application in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 31(1), pages 3-45.
    3. Caamal-Olvera, Cinthya G. & Rangel-González, Erick, 2015. "Measuring the impact of the Chinese competition on the Mexican Labor Market: 1990–2013," The North American Journal of Economics and Finance, Elsevier, vol. 34(C), pages 351-363.

    More about this item

    Keywords

    manufacturing; returns to education; quantile regression; Northern regions;

    JEL classification:

    • I29 - Health, Education, and Welfare - - Education - - - Other

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