Trade Liberalization and Wage Inequality in Mexico
Gordon Hanson () and
Ann Harrison ()
ILR Review, 1999, vol. 52, issue 2, 271-288
During the 1980s in Mexico the wage gap between skilled and unskilled workers widened. The authors assess the extent to which this increased wage inequality was associated with Mexico's sweeping trade reform in 1985. Examining data on 2,354 Mexican manufacturing plants for 1984â€“90 and Mexican Industrial Census data for 1965â€“88, they find that the reduction in tariff protection in 1985 disproportionately affected low-skilled industries. Goods from that sector, the authors suggest, may have fallen in price because of increased competition from economics with reserves of cheap unskilled labor larger than Mexico's. The consequent increase in the relative price of skill-intensive goods could explain the increase in wage inequality.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (252) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:52:y:1999:i:2:p:271-288
Access Statistics for this article
More articles in ILR Review from Cornell University, ILR School
Bibliographic data for series maintained by SAGE Publications ().