EconPapers    
Economics at your fingertips  
 

Trade Liberalization and Wage Inequality in Mexico

Gordon Hanson () and Ann Harrison ()

ILR Review, 1999, vol. 52, issue 2, 271-288

Abstract: 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 1984–90 and Mexican Industrial Census data for 1965–88, 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.

Date: 1999
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)
https://journals.sagepub.com/doi/10.1177/001979399905200207 (text/html)

Related works:
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: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:52:y:1999:i:2:p:271-288

DOI: 10.1177/001979399905200207

Access Statistics for this article

More articles in ILR Review from Cornell University, ILR School
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2022-08-15
Handle: RePEc:sae:ilrrev:v:52:y:1999:i:2:p:271-288