Looking for Local Labor Market Effects of NAFTA

Shushanik Hakobyan and John McLaren
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Shushanik Hakobyan: Fordham University

The Review of Economics and Statistics, 2016, vol. 98, issue 4, 728-741

Abstract: Using U.S. Census data for 1990 to 2000, we estimate effects of NAFTAon U.S.wages.We look for effects of the agreement by industry and by geography, measuring each industry's vulnerability to Mexican imports and each locality's dependence on vulnerable industries. We find evidence of both effects, dramatically lowering wage growth for blue-collar workers in the most affected industries and localities (even for service-sector workers in affected localities, whose jobs do not compete with imports). These distributional effects are much larger than aggregate welfare effects estimated by other authors.

Keywords: NAFTA; Wage Growth; Local Labor Markets (search for similar items in EconPapers)
JEL-codes: F13 F16 J31 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (146)

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Working Paper: Looking for Local Labor Market Effects of NAFTA (2010)
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