Has NAFTA Increased Labor Market Integration between the United States and Mexico?
This article analyzes three criteria for labor market integration between Mexico and the United States (U.S.) before and since the North American Free Trade Agreement (NAFTA): the responsiveness of Mexican wages to US wage shocks, the speed at whic...
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Published by Oxford University Press on behalf of the World Bank
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2005/09/17752946/nafta-increased-labor-market-integration-between-united-states-mexico http://hdl.handle.net/10986/16469 |
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okr-10986-164692021-04-23T14:03:29Z Has NAFTA Increased Labor Market Integration between the United States and Mexico? Robertson, Raymond ADVERSE EFFECT AGE GROUP AGE GROUPS AVERAGE WAGE AVERAGE WAGES BASE YEAR CAPITAL FLOWS CD COMMERCE COMMODITY PRICE CONSUMER PRICE CONSUMER PRICE INDEX DEBT DEBT CRISIS DEMAND CURVE DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC FLUCTUATIONS ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC RESEARCH ECONOMIC RISK ECONOMICS EMPLOYMENT GROWTH EQUILIBRIUM WAGES ESTIMATED PARAMETERS EXCHANGE RATES EXPORTS FACTOR PRICE FREE TRADE GDP GDP PER CAPITA GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GLOBALIZATION GROWTH RATE HOUSEHOLD SURVEYS INCOME INCOME INEQUALITY INFLATION INTERMEDIATE GOODS JOBS LABOR ADJUSTMENT LABOR ADJUSTMENT COSTS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKETS LABOR MIGRATION LABOR MOBILITY LABOR SUPPLY LABOUR LABOUR MARKET LIVING STANDARDS MANUFACTURING INDUSTRIES MARKET INTEGRATION NAFTA POLITICAL ECONOMY POSITIVE EFFECTS PREVIOUS SECTION PRICE CHANGES PRICE INDICES PRODUCTIVITY REAL WAGE REAL WAGES RETAIL RETAIL TRADE SKILLED WORKERS TRADE LIBERALIZATION URBAN EMPLOYMENT WAGE DATA WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE EQUALIZATION WAGE GAP WAGE INEQUALITY WAGES WORKER This article analyzes three criteria for labor market integration between Mexico and the United States (U.S.) before and since the North American Free Trade Agreement (NAFTA): the responsiveness of Mexican wages to US wage shocks, the speed at which relative wages return to a long-run differential, and changes in the rate of convergence of absolute wages. Tests for increased integration using these three criteria generate mixed results, which are then explored by directly incorporating trade, foreign direct investment (FDI), and migration. The results suggest that trade and FDI did in fact positively contribute to integration but that the increase in border enforcement depressed Mexican wages, masking the positive benefits. 2014-01-03T15:17:47Z 2014-01-03T15:17:47Z 2005-09 Journal Article http://documents.worldbank.org/curated/en/2005/09/17752946/nafta-increased-labor-market-integration-between-united-states-mexico World Bank Economic Review doi:10.1093/wber/lhi016 http://hdl.handle.net/10986/16469 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article Latin America & Caribbean Mexico UNITED STATES |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ADVERSE EFFECT AGE GROUP AGE GROUPS AVERAGE WAGE AVERAGE WAGES BASE YEAR CAPITAL FLOWS CD COMMERCE COMMODITY PRICE CONSUMER PRICE CONSUMER PRICE INDEX DEBT DEBT CRISIS DEMAND CURVE DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC FLUCTUATIONS ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC RESEARCH ECONOMIC RISK ECONOMICS EMPLOYMENT GROWTH EQUILIBRIUM WAGES ESTIMATED PARAMETERS EXCHANGE RATES EXPORTS FACTOR PRICE FREE TRADE GDP GDP PER CAPITA GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GLOBALIZATION GROWTH RATE HOUSEHOLD SURVEYS INCOME INCOME INEQUALITY INFLATION INTERMEDIATE GOODS JOBS LABOR ADJUSTMENT LABOR ADJUSTMENT COSTS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKETS LABOR MIGRATION LABOR MOBILITY LABOR SUPPLY LABOUR LABOUR MARKET LIVING STANDARDS MANUFACTURING INDUSTRIES MARKET INTEGRATION NAFTA POLITICAL ECONOMY POSITIVE EFFECTS PREVIOUS SECTION PRICE CHANGES PRICE INDICES PRODUCTIVITY REAL WAGE REAL WAGES RETAIL RETAIL TRADE SKILLED WORKERS TRADE LIBERALIZATION URBAN EMPLOYMENT WAGE DATA WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE EQUALIZATION WAGE GAP WAGE INEQUALITY WAGES WORKER |
| spellingShingle |
ADVERSE EFFECT AGE GROUP AGE GROUPS AVERAGE WAGE AVERAGE WAGES BASE YEAR CAPITAL FLOWS CD COMMERCE COMMODITY PRICE CONSUMER PRICE CONSUMER PRICE INDEX DEBT DEBT CRISIS DEMAND CURVE DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC FLUCTUATIONS ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC RESEARCH ECONOMIC RISK ECONOMICS EMPLOYMENT GROWTH EQUILIBRIUM WAGES ESTIMATED PARAMETERS EXCHANGE RATES EXPORTS FACTOR PRICE FREE TRADE GDP GDP PER CAPITA GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GLOBALIZATION GROWTH RATE HOUSEHOLD SURVEYS INCOME INCOME INEQUALITY INFLATION INTERMEDIATE GOODS JOBS LABOR ADJUSTMENT LABOR ADJUSTMENT COSTS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKETS LABOR MIGRATION LABOR MOBILITY LABOR SUPPLY LABOUR LABOUR MARKET LIVING STANDARDS MANUFACTURING INDUSTRIES MARKET INTEGRATION NAFTA POLITICAL ECONOMY POSITIVE EFFECTS PREVIOUS SECTION PRICE CHANGES PRICE INDICES PRODUCTIVITY REAL WAGE REAL WAGES RETAIL RETAIL TRADE SKILLED WORKERS TRADE LIBERALIZATION URBAN EMPLOYMENT WAGE DATA WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE EQUALIZATION WAGE GAP WAGE INEQUALITY WAGES WORKER Robertson, Raymond Has NAFTA Increased Labor Market Integration between the United States and Mexico? |
| geographic_facet |
Latin America & Caribbean Mexico UNITED STATES |
| description |
This article analyzes three criteria for
labor market integration between Mexico and the United
States (U.S.) before and since the North American Free Trade
Agreement (NAFTA): the responsiveness of Mexican wages to US
wage shocks, the speed at which relative wages return to a
long-run differential, and changes in the rate of
convergence of absolute wages. Tests for increased
integration using these three criteria generate mixed
results, which are then explored by directly incorporating
trade, foreign direct investment (FDI), and migration. The
results suggest that trade and FDI did in fact positively
contribute to integration but that the increase in border
enforcement depressed Mexican wages, masking the positive benefits. |
| format |
Journal Article |
| author |
Robertson, Raymond |
| author_facet |
Robertson, Raymond |
| author_sort |
Robertson, Raymond |
| title |
Has NAFTA Increased Labor Market Integration between the United States and Mexico? |
| title_short |
Has NAFTA Increased Labor Market Integration between the United States and Mexico? |
| title_full |
Has NAFTA Increased Labor Market Integration between the United States and Mexico? |
| title_fullStr |
Has NAFTA Increased Labor Market Integration between the United States and Mexico? |
| title_full_unstemmed |
Has NAFTA Increased Labor Market Integration between the United States and Mexico? |
| title_sort |
has nafta increased labor market integration between the united states and mexico? |
| publisher |
Published by Oxford University Press on behalf of the World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2005/09/17752946/nafta-increased-labor-market-integration-between-united-states-mexico http://hdl.handle.net/10986/16469 |
| _version_ |
1764433307700822016 |