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Trade and Local Labor Market Outcomes in Mexico: Disentangling the Channels and the Role of Geography, Sectors, and Trade Types

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dc.contributor.authorVazquez, Emmanuel
dc.contributor.authorWinkler, Deborah
dc.date.accessioned2023-03-01T22:07:53Z
dc.date.accessioned2023-03-06T16:45:38Z
dc.date.available2023-03-01T22:07:53Z
dc.date.available2023-03-06T16:45:38Z
dc.date.issued2023-02
dc.description.abstractThis study provides new evidence on the local labor market impacts of trade, differentiating between the employment, income, migration, and informality channels. It uses a unique dataset matching information on exports and imports from customs with indicators on employment and labor incomes for around 2,000 Mexican municipalities over 2004–14. The analysis uses an instrumental variable approach that combines the initial structure of trade across municipalities with global trends in trade between low- and middle-income countries (excluding Mexico) and the United States by sector. First, the study finds that expanding exports per worker in Mexico’s municipalities increased labor force participation but not employment rates. Exports also raised total labor incomes but not average labor incomes, implying a growing labor supply. The results also find that export and import expansion increased immigration and lowered the rate of informal workers. Second, the analysis examines differences by geography and sectors. It finds that trade affected labor markets in the North through the income and migration channels and in the South through the employment and informality channels. Exports benefitted the total incomes of workers in both the manufacturing and service sectors but reduced informality only in manufacturing. Third, the study suggests a more favorable role of intermediate relative to final imports, driven by manufacturing imports. It also finds evidence for positive spillovers from global value chain participation through the employment and income channels. Finally, it examines how local policy mediates the labor market effects from trade, focusing on connectivity, labor market flexibility, and education spending.en
dc.identifierhttp://documents.worldbank.org/curated/en/099006002282317148/IDU1a575bd3e12aac14c4d181451a75e0cdce4c5
dc.identifier.doi10.1596/1813-9450-10332
dc.identifier.urihttps://hdl.handle.net/10986/39490
dc.languageEnglish
dc.language.isoen
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Papers;10332
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectINTERNATIONAL TRADE
dc.subjectEXPORTS
dc.subjectIMPORTS
dc.subjectGLOBAL VALUE CHAINS
dc.subjectLOCAL IMPACTS
dc.subjectLABOR MARKET
dc.subjectEMPLOYMENT
dc.subjectINFORMALITY
dc.subjectMIGRATION
dc.subjectEDUCATION SPENDING
dc.subjectCONNECTIVITY
dc.titleTrade and Local Labor Market Outcomes in Mexicoen
dc.title.subtitleDisentangling the Channels and the Role of Geography, Sectors, and Trade Typesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleTrade and Local Labor Market Outcomes in Mexico: Disentangling the Channels and the Role of Geography, Sectors, and Trade Types
okr.date.disclosure2023-02-28
okr.date.doiregistration2025-04-10T11:26:34.683815Z
okr.date.lastmodified2023-02-28T00:00:00Zen
okr.doctypeWorking Papers
okr.doctypeWorking Papers::Policy Research Working Papers
okr.docurlhttp://documents.worldbank.org/curated/en/099006002282317148/IDU1a575bd3e12aac14c4d181451a75e0cdce4c5
okr.guid099006002282317148
okr.identifier.doi10.1596/1813-9450-10332
okr.identifier.externaldocumentumIDU-a575bd3e-2aac-4c4d-8145-a75e0cdce4c5
okr.identifier.internaldocumentum34010670
okr.identifier.reportWPS10332
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099006002282317148/pdf/IDU1a575bd3e12aac14c4d181451a75e0cdce4c5.pdfen
okr.region.countryMexico
okr.topicInternational Economics and Trade::Trade and Labor
okr.topicLaw and Development::Labor & Employment Law
okr.topicPoverty Reduction::Employment and Shared Growth
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.unitEFI-MTI-TIC-Trade and RI (ETIRI)
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