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Can Maquila Booms Reduce Poverty? Evidence from Honduras

  • de Hoyos, Rafael E.

    ()

    (SEMS)

  • Bussolo, Maurizio

    ()

    (The World Bank)

  • Nunez, Oscar

    (The World Bank)

This paper identifies and estimates the strength of the reduction in poverty linked to improved opportunities for women in the expanding maquila sector. A simulation exercise shows that, at a given point in time, poverty in Honduras would have been 1.5 percentage points higher had the maquila sector not existed. Of this increase in poverty, 0.35 percentage points is attributable to the wage premium paid to maquila workers, 0.1 percentage points to the wage premium received by women in the maquila sector, and 1 percentage point to employment creation. Given that female maquila workers represent only 1.1 percent of the active population in Honduras, this contribution to poverty reduction is significant.

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File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/12/01/000158349_20081201101316/Rendered/PDF/WPS4789.pdf
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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4789.

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Length: 23 pages
Date of creation: 01 Dec 2008
Date of revision:
Handle: RePEc:wbk:wbrwps:4789
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  1. Morley, Samuel & Nakasone, Eduardo & Pineiro, Valeria, 2008. "The impact of CAFTA on employment, production, and poverty in Honduras:," IFPRI discussion papers 748, International Food Policy Research Institute (IFPRI).
  2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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