Economics and Finance Faculty Publications
Assessing returns to education and labor shocks in Mexican regions after NAFTA
Document Type
Article
Publication Date
2015
Abstract
This article examines Mexico's (real) wage movements across its 32 subnational entities for post-North American Free Trade Agreement years. Employing dynamic panel data methods, we obtain the following results. First, education (or labor productivity) has slightly higher wage effects in the Border-North region. Second, allowing for foreign capital and labor to respond to wages, returns to education have higher effects in South-Center Mexico, the region with (average) lower education levels. Third, convergence rates become lower with endogenous foreign capital and migration flows: wages move faster in the South-Center region than in Border-North. Overall, migration flows have greater effects on wages than foreign direct investment inflows.
Recommended Citation
Mollick, A.V. and Cabral, R., 2015. Assessing returns to education and labor shocks in Mexican regions after NAFTA. Contemporary Economic Policy, 33(1), pp.190-206. https://doi.org/10.1111/coep.12063
Publication Title
Contemporary Economic Policy
DOI
10.1111/coep.12063
Comments
© 2014 Western Economic Association International.
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