Can Maquila Booms Reduce Poverty? Evidence from Honduras
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.
|Date of creation:||01 Dec 2008|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Morley, Samuel A. & Nakasone, Eduardo & Piñeiro, Valeria, 2008.
"The impact of CAFTA on employment, production and poverty in Honduras,"
Sede Subregional de la CEPAL en México (Estudios e Investigaciones)
25858, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
- 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).
- Jansen, Hans G.P. & Morley, Samuel & Kessler, Gloria & Pineiro, Valeria & Sánchez, Marco & Torero, Maximo, 2007. "The impact of the Central America Free Trade Agreement on the Central American textile maquila industry:," IFPRI discussion papers 720, International Food Policy Research Institute (IFPRI).
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4789. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.