Aleman-Castilla, Benjamin - London School of Economics (LSE) - 2006
This paper studies the impact of NAFTA on informality and real wages in Mexico. Using a dynamic industry model with … most productive firms, and an increase in real wages due to the increased labour demand by these firms. Using data on … import tariffs is related to an increase in real wages, and that the elimination of the U.S. import tariff has contributed to …