This paper assesses the effects of trade and technological change on Mexico's labor market between 1994 and 2019. The implications of the exposure of local labor markets to greater trade integration under NAFTA and to greater competition from China in the US market are analyzed, as are the...

We provide a general theoretical characterization of how firms' technology choice on a technology frontier determines the long-run elasticity of substitution between capital and labor. We show that the shape of the frontier determines factor shares and the elasticity of substitution between...