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dc.contributor.authorHeid, Benedikten_US
dc.contributor.authorLarch, Marioen_US
dc.contributor.authorRiaño, Alejandroen_US
dc.date.accessioned2012-02-14en_US
dc.date.accessioned2012-02-15T17:38:22Z-
dc.date.available2012-02-15T17:38:22Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/55354-
dc.description.abstractMexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a large proportion of its labor force remains employed in the informal sector. Since one of the main objectives of the maquiladora program was to increase formal employment, we study how the rapid increase in maquiladora activity has affected labor market outcomes in Mexico. We develop a heterogeneous firm model with imperfect labor markets that captures salient features of the Mexican economy such as the differences between maquila and non-maquila manufacturing plants and the existence of an informal sector. We calibrate the model's parameters to match key cross-sectional moments characterizing the Mexican economy. Our quantitative model indicates that the expansion of the maquila sector during the 1990s produced an increase in informality of 0.9% and a reduction in the skill premium and overall welfare of 2.7% and 3.7%, respectively. A counterfactual experiment in which we shut down the informal sector completely results in a reduction of Mexican welfare of 33.5% relative to the equilibrium with an informal sector.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Trade Policy 3689en_US
dc.subject.jelF12en_US
dc.subject.jelF14en_US
dc.subject.jelF16en_US
dc.subject.jelF23en_US
dc.subject.jelO24en_US
dc.subject.ddc330en_US
dc.subject.keywordoffshoringen_US
dc.subject.keywordinformal sectoren_US
dc.subject.keywordmaquiladorasen_US
dc.subject.keywordtrade and labor marketsen_US
dc.subject.keywordMexicoen_US
dc.subject.stwOffshoringen_US
dc.subject.stwLohnfertigungen_US
dc.subject.stwInformeller Sektoren_US
dc.subject.stwBeschäftigungseffekten_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwMexikoen_US
dc.titleMaquiladoras and informality: A mixed blessingen_US
dc.typeWorking Paperen_US
dc.identifier.ppn685220796en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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