Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35541
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dc.contributor.authorHazarika, Gautamen_US
dc.contributor.authorOtero, Rafaelen_US
dc.date.accessioned2008-11-07en_US
dc.date.accessioned2010-07-07T11:53:06Z-
dc.date.available2010-07-07T11:53:06Z-
dc.date.issued2008en_US
dc.identifier.piurn:nbn:de:101:1-20081126506en_US
dc.identifier.urihttp://hdl.handle.net/10419/35541-
dc.description.abstractThis study examines the effect of NAFTA, an instance of North-South trade liberalization, on returns to skill in Mexico. Mexico is abundant in low-skill workers relative to the US and Canada, and so, by the Hecksher-Ohlin-Samuelson trade model, NAFTA ought to have raised the relative earnings of low-skill workers, that is, lowered returns to skill in Mexico. Analysis of Mexican labor micro-data yields the finding that while returns to skill in industries producing tradeables have risen, ceteris paribus, since Mexico embarked upon trade liberalization by joining the GATT in 1986, this rise was less pronounced by 1999 in industries liberalized relatively rapidly by NAFTA, launched in 1994, than in industries liberalized relatively slowly by this phased trade treaty. This is considered evidence of NAFTA holding back rise in returns to skill, since it is plausible such a dampening would have been more marked in industries more rapidly exposed to trade with Mexico's skill abundant northern neighbors. Hence, this study suggests trade with developed nations may lower returns to skill in developing nations. It is speculated this may slow the pace of private human capital accumulation in developing nations, with negative consequences for their economic growth.en_US
dc.language.isoengen_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aIZA discussion papers |x3788en_US
dc.subject.jelF11en_US
dc.subject.ddc330en_US
dc.subject.keywordNAFTAen_US
dc.subject.keywordHeckscher-Ohlin modelen_US
dc.subject.keywordhuman capitalen_US
dc.subject.stwBildungsertragen_US
dc.subject.stwQualifikationen_US
dc.subject.stwAu├čenhandelsliberalisierungen_US
dc.subject.stwFreihandelszoneen_US
dc.subject.stwFaktorproportionentheoremen_US
dc.subject.stwBildungsinvestitionen_US
dc.subject.stwMexikoen_US
dc.subject.stwNAFTA-Staatenen_US
dc.titleNorth-South trade liberalization and returns to skill in the south: the case of Mexicoen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn58460338Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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