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This study examines the effect of NAFTA, an instance of North-South trade liberalization, on returns to skill in Mexico …. Mexico is abundant in low-skill workers relative to the US and Canada, and so, by the Hecksher-Ohlin-Samuelson trade model …, NAFTA ought to have raised the relative earnings of low-skill workers, that is, lowered returns to skill in Mexico. Analysis …
Persistent link: https://www.econbiz.de/10003771056
Persistent link: https://www.econbiz.de/10001894033
We use panel data on Mexican manufacturing plants to study the dynamics of plant-level exporting activity at both the extensive and the intensive margins and the connection between exporting dynamics and plant-level total factor productivity growth. We find that exporting activity has a ladder...
Persistent link: https://www.econbiz.de/10003771885
In this paper we study the effect of NAFTA on the responsiveness of Mexican economy to real exchange rate shocks. We argue that, by opening the U.S. and Canadian markets to Mexican goods, NAFTA made it easier for domestic producers to take advantage of the opportunities brought by the...
Persistent link: https://www.econbiz.de/10003904720
We use panel data on Mexican manufacturing plants to study the connection between plants’ responses to changes in the economic environment and their contributions to aggregate productivity growth in the period following the implementation of the North American Trade Agreement (NAFTA). In all...
Persistent link: https://www.econbiz.de/10003646696
The effect of foreign labor on native employment within an occupation depends on native labor supply to that occupation – which is rarely directly measured – even if native and foreign labor are perfect substitutes in production. This paper uses two natural quasi-experiments to directly...
Persistent link: https://www.econbiz.de/10011607330
Even if free trade creates net welfare gains for a country as a whole, the associated distributional implications can undermine the political viability of free trade. We show that trade-related redistribution increases the political viability of free trade in the US. We do so by assessing the...
Persistent link: https://www.econbiz.de/10010339571
There is limited evidence on the labor market impact of diabetes, and existing evidence tends to be weakly identified. Making use of Mexican panel data to estimate individual fixed effects models, we find evidence for adverse effects of self-reported diabetes on employment probabilities, but not...
Persistent link: https://www.econbiz.de/10011520995
the effect of a program in Mexico that granted firms in certain industries wage subsidies if they decided to keep their …
Persistent link: https://www.econbiz.de/10011493836
identify a causal effect, we instrument county level repatriations with the existence of a railway line to Mexico interacted …
Persistent link: https://www.econbiz.de/10012126112