Abstract

LOPEZ MONTES, Karla Mercedes; BURGOS FLORES, Benjamín  and  MUNGARAY LAGARDA, Alejandro. Trade liberalization effects on the labor demand in the manufacturing sector in Mexico. Cuad. Econ. [online]. 2020, vol.39, n.79, pp.329-354. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v39n79.67861.

This article analyzes the effects of trade openness on the Mexican labor market. For this, we estimate the labor demand elasticity relative to the wage for the manufacturing sector over the period 1987-2011. The model was based on an equation of labor demand and included a variable as an indicator of the degree of trade openness. As for the estimation method, we used the Arellano-Bover/Blun-dell-Bond linear dynamic panel-data estimation system. The results indicate that the elasticity increased with the North American Free Trade Agreement, which has important implications on the labor market.

JEL: J23, F41, F16, F66.

Keywords : Labor Market; Labor Demand; Trade Openness; Elasticity; Qualified and Non-Qualified Labor.

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