This paper exploits the Mexican Encuesta Nacional de Empleo Urbano (ENEU) to determine the existence of the wage curve|an empirical phenomena rst suggested by Blanch ower and Oswald (1990)|during the period 2000{2003. We propose an innovative approach to the wage curve by estimating the...

This paper exploits the surge in Chinese exports from 1994 to 2004 as a natural experiment to evaluate the effects of a unilateral low wage trade and competition shock to producers in Mexico. We find that this shock causes selection at both firm and product levels as its impact is highly...