Multinational Enterprises and Employment in Mexico

Agustín Filippo, Carlos Guaipatín, Lucas Navarro, Ignacio Willington and Federico Wyss

No 14619, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This paper examines the employment effects of multinational enterprises (MNEs) in Mexico, focusing on the labor market impacts of foreign tariff increases during 2018-2019. Using data from Mexicos National Survey of Occupations and Employment (ENOE) for 2014-2023 combined with sector-level tariff exposure measures based on Fajgelbaum et al. (2024), we construct a quarterly city-sector panel distinguishing employment in MNEs and domestic firms. We analyze employment outcomes across worker characteristics (education, age, gender) and firm attributes (size and location). Results indicate a positive employment effect in MNEs within the sectors most affected by the tariff increases, particularly for highly educated workers and small establishments. In contrast, there is no clear evidence of significant effects on wages.

Keywords: Trade and Labor Market Interactions; Multinational Firms; International Business (search for similar items in EconPapers)
JEL-codes: F16 F23 O54 (search for similar items in EconPapers)
Date: 2026-06
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:14619

DOI: 10.18235/0014066

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