Trade Shocks and Mexican Local Labor Markets in the Great Recession

Oscar Mendez

Working Paper Series Sobre México from Sobre México. Temas en economía

Abstract: This paper studies the spread of the U.S. credit crisis to Mexican local labor markets, explicitly identifying the role that trade played in the transmission of the negative shock across the two countries. To identify the trade channel empirically, I exploit the variation in dependence on the U.S. market displayed by Mexican local labor markets. Differences in manufacturing industry structure caused by Mexico's opening process have made a subset of Mexican municipalities especially vulnerable to economic events in the U.S. Mexican municipalities that exported relatively more to the U.S. experienced large and significant differential effects when compared to municipalities more focused on the domestic market. Mexican regions with significant ties to the U.S. market experienced, during the crisis, a significantly larger decrease in employment and wages, and greater within local labor market adjustments than their less open counterparts.

JEL-codes: E24 F14 F16 J30 L60 (search for similar items in EconPapers)
Date: 2015-09-24
New Economics Papers: this item is included in nep-int, nep-mac and nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
https://sobremexico.ibero.mx/docs/wp/WP_2015_002.pdf First version, 2015 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

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:smx:wpaper:2015002

Access Statistics for this paper

More papers in Working Paper Series Sobre México from Sobre México. Temas en economía
Bibliographic data for series maintained by Maria Alejandra Villegas Gutierrez ().