Economics at your fingertips  

Labour market adjustment to third‐party competition: Evidence from Mexico

Raymond Robertson, Timothy Halliday and Sindhu Vasireddy ()

The World Economy, 2020, vol. 43, issue 7, 1977-2006

Abstract: China's exports reduce wages in importing countries, but few studies have looked at competition in third‐party markets. We examine labour market outcomes in Mexico's apparel and textile sectors associated with US apparel and textile imports from China. Using data on US imports in conjunction with quarterly Mexican labour force surveys, we show that US imports from China are associated with a reduction of employment in Mexico's apparel and textile sectors. These effects are the most pronounced for the least educated. Wages were not impacted on net except for possibly the poorest which would indicate stronger local labour market ties in the left tail of the wage distribution. Finally, the effects of trade‐induced demand shocks dissipate after about two quarters indicating low firm‐level adjustment costs.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)

Related works:
Working Paper: Labor Market Adjustment to Third Party Competition: Evidence from Mexico (2018) Downloads
Working Paper: Labor Market Adjustment to Third Party Competition: Evidence from Mexico (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2021-02-09
Handle: RePEc:bla:worlde:v:43:y:2020:i:7:p:1977-2006