IDEAS home Printed from
   My bibliography  Save this paper

Regional Labor Market Integration: Northern Mexico and Southern USA


  • Willy W. Cortez

    (Universidad de Guadalajara)

  • Alejandro Islas-Camargo

    (Instituto Tecnologico Autonomo de México)


In this paper, the analysis of co-dependence between the US and Mexico labor markets is carried out by estimating the cyclical component of California’s and Texas’ manufacturing employment and four US Border Mexican cities through the Hodrick-Prescott filter. We estimated the smoothing parameter following a calibration technique proposed by Guerrero et al (2001) which allows us to obtain the best linear unbiased estimator of the trend component. Our analysis suggests that after 1994 there has been greater labor market integration between Mexico’s northern region and US’ southern region. This greater integration has implied a change in the nature of the short term relationship of manufacturing employment between Mexico and the US. The change is also significant on the relationship between Mexican real wages and US employment.

Suggested Citation

  • Willy W. Cortez & Alejandro Islas-Camargo, 2004. "Regional Labor Market Integration: Northern Mexico and Southern USA," Urban/Regional 0409011, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpur:0409011
    Note: Type of Document - pdf; pages: 38. FDI and Labor Market Integration

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Labor Market Integration; US-Mexico border; Hodrick-Prescott filter;

    JEL classification:

    • J - Labor and Demographic Economics


    Access and download statistics


    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:wpa:wuwpur:0409011. 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: (EconWPA). General contact details of provider: .

    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.