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Import Shocks and Gendered Labor Market Responses: Evidence from Mexico

Author

Listed:
  • Pia Heckl

    (Department of Economics, Vienna University of Economics and Business)

Abstract

This paper studies gender differences in the labor market reallocation of workers in Mexico as a response to trade liberalization with China. To measure exposure to import competition, I exploit variation in the initial industry structure of Mexican local labor markets. I show that aggregate outcomes mask heterogeneous responses based on gender. Although the employment rate drops for both men and women, the former enter into unemployment while the latter leave the labor force. The results suggest that the drop in the female labor force participation rate is driven by their exit out of formal and especially informal work.

Suggested Citation

  • Pia Heckl, 2022. "Import Shocks and Gendered Labor Market Responses: Evidence from Mexico," Department of Economics Working Papers wuwp327, Vienna University of Economics and Business, Department of Economics.
    • Handle: RePEc:wiw:wiwwuw:wuwp327
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    Keywords

    Trade; Gender Inequality; Labor Market; Informal Work; Mexico;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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