Globalization, Labor Income, and Poverty in Mexico

Gordon Hanson

No 11027, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper, I examine changes in the distribution of labor income across regions of Mexico during the country's decade of globalization in the 1990's. I focus the analysis on men born in states with either high-exposure or low-exposure to globalization, as measured by the share of foreign direct investment, imports, or export assembly in state GDP. Controlling for regional differences in the distribution of observable characteristics and for initial differences in regional incomes, the distribution of labor income in high-exposure states shifted to the right relative to the distribution of income in low-exposure states. This change was primarily the result of a shift in mass in the income distribution for low-exposure states from upper-middle income earners to lower income earners. Labor income in low-exposure states fell relative to high-exposure states by 10% and the incidence of wage poverty (the fraction of wage earners whose labor income would not sustain a family of four at above-poverty consumption levels) in low-exposure states increased relative to high-exposure states by 7%.

JEL-codes: F1 (search for similar items in EconPapers)
Date: 2005-01
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46)

Published as Globalization, Labor Income, and Poverty in Mexico , Gordon H. Hanson. in Globalization and Poverty , Harrison. 2007

Downloads: (external link)
http://www.nber.org/papers/w11027.pdf (application/pdf)

Related works:
Chapter: Globalization, Labor Income, and Poverty in Mexico (2007)
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:nbr:nberwo:11027

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w11027

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().