EconPapers    
Economics at your fingertips  
 

Labor market consequences of trade openness and competition in foreign markets

Chiquiar Daniel, Covarrubias Enrique, Salcedo Alejandrina
Authors registered in the RePEc Author Service: Daniel Chiquiar () and Enrique Covarrubias ()

No 2017-01, Working Papers from Banco de México

Abstract: We analyze the labor market consequences of international trade, using the evidence provided by the behavior of Mexican labor markets after the introduction of NAFTA in the nineties and the accession of China to the WTO in 2001. Following an approach close to that proposed by Autor, Dorn and Hanson (2013), we use the local market variation on exposure to international markets to identify the effects of these events. We show that NAFTA integration reduced unemployment, and boosted employment and wages. Chinese competition tended to have the opposite effect. Additionally, we find that the labor market responses to international trade are heterogeneous across regions in the country, being significantly stronger in the regions closer to the U.S. border.

Keywords: International trade and labor markets, local labor markets, Mexico; NAFTA; Chinese competition (search for similar items in EconPapers)
JEL-codes: E24 F14 F16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2017-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.banxico.org.mx/publications-and-press/b ... -CAFD8643B922%7D.pdf (application/pdf)

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:bdm:wpaper:2017-01

Access Statistics for this paper

More papers in Working Papers from Banco de México Contact information at EDIRC.
Bibliographic data for series maintained by Dirección de Sistemas ().

 
Page updated 2019-10-14
Handle: RePEc:bdm:wpaper:2017-01