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Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing
Abstract
This article analyzes the effect of trade liberalization on employment and wages in the Mexican manufacturing sector. The study documents that many of the rents generated by trade protection were absorbed by workers in the form of a wage premium. Trade liberalization affected firm‐level employment and wages by shifting down industry product and labor demand. This in itself may have accounted for a 3%–4% decline in real wages on average. But trade reform also reduced the rents available to be captured by firms and workers. This had an additional negative effect on firm‐level employment and wages.
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Citations
Cited by
Trade Liberalization and Poverty: The Evidence So Far
Winters, L. A., McCulloch, N., & McKay, A. (2004) · Journal of Economic Literature · doi:10.1257/002205104773558056 · Cited by 1,085
The Long and Short of the Canada-U.S. Free Trade Agreement
Trefler, D. (2004) · American Economic Review · doi:10.1257/0002828042002633 · Cited by 1,071
Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from India
Topalova, P. (2010) · American Economic Journal: Applied Economics · doi:10.1257/app.2.4.1 · Cited by 658
Distributional Effects of Globalization in Developing Countries
Goldberg, P. K., & Pavcnik, N. (2007) · Journal of Economic Literature · doi:10.1257/jel.45.1.39 · Cited by 539
Workers and Trade Liberalization: The Impact of Trade Reforms in Mexico on Wages and Employment
Feliciano, Z. M. (2001) · ILR Review · doi:10.1177/001979390105500106 · Cited by 294
Metadata
- Authors
- Revenga, A.
- Venue
- Journal of Labor Economics
- Publisher
- University of Chicago Press
- Published
- 1997-07
- Volume
- 15
- Issue
- S3
- Pages
- S20-S43
- ISSN
- 0734-306X (ISSN-L)
- 1537-5307
- OpenAlex
- W3124610196
- Cited by
- 502
- References
- 0
- FWCI
- 17.90
- Type
- journal article
- Language
- en
- Open access
- closed
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- Revenga, A. (1997). Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing. Journal of Labor Economics. https://doi.org/10.1086/209875
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Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
