Abstract

CASTRO-LUGO, David  and  AGUILERA-FERNANDEZ, Albany. TRADE OPENING AND WAGE INEQUALITY IN MEXICO: A REGIONAL ANALYSIS FOR 1992 AND 2014. Semest. Econ. [online]. 2017, vol.20, n.45, pp.109-131. ISSN 0120-6346.  https://doi.org/10.22395/seec.v20n45a4.

This paper assesses the effect generated by the trade opening process on the structure of labor market and wage inequality in Mexico for the years 1992 and 2014, using information from the National Urban Employment Survey and the National Employment and Occupation Survey. The micro-simulation exercise at regional level indicates that in the absence of trade liberalization, the disparity would be lower than in 2014. The structure of employment by qualification type and remuneration were the main sources of change in labor inequality. In Mexico, contrary to theoretical predictions, the opening up of the economy to foreign trade did not contribute to reduce long-term disparities, although in 2014 the Mexican region with greater exposure to foreign trade presents less inequality (0.357) in relation to the least exposed (0.393), a difference that is higher than the observed in 1992 (0.397 vs. 0.410).

JEL CLASSIFICATION: F31, J21, J31, R23

Keywords : Trade aoerture; foreign trade; labor market; wage inequality; micro-simulations; Mexico.

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