In this paper, we examine the increase in the relative wages of skilled workers in Mexico during the 1980s. We argue that rising wage inequality in Mexico is linked to capital inflows from abroad. The effect of these capital inflows, which correspond to an increase in outsourcing by...

We develop an empirical framework to assess the importance of trade and technical change on the wages of production and nonproduction workers. Trade is measured by the foreign outsourcing of intermediate inputs, while technical change is measured by the shift towards high-technology capital such...

In this paper, we use data from the Mexico and U.S. population censuses to examine who migrates from Mexico to the United States and how the skills and economic performance of these individuals compare to those who remain in Mexico. We test Borjas' negative-selection hypothesis that in poor...