Globalization, Regional Wage Differentials and the Stolper-Samuelson Theorem: Evidence from México

Daniel Chiquiar

No 2004-06, Working Papers from Banco de México

Abstract: Using individual-level data on personal characteristics and wages and state-level data on trade, foreign direct investment, international migration and other site-specific features, I study what factors determined the changes in Mexico's regional wage differentials between 1990 and 2000. I exploit the regional variation in the exposure to globalization to identify the effects of NAFTA on wages and on returns to schooling. The results support the presence of Stolper-Samuelson type of responses during Mexico's globalization process: regions more exposed to international markets appear to have exhibited an increase in wage levels, but a decrease in returns to schooling, relative to other regions of the country. The results suggest that globalization has an important spatial dimension that is usually neglected in traditional trade models.

JEL-codes: F11 F14 F16 (search for similar items in EconPapers)
Date: 2004-10
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Globalization, regional wage differentials and the Stolper-Samuelson Theorem: Evidence from Mexico (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:bdm:wpaper:2004-06

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