Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/208212 
Year of Publication: 
2019
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1078
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This paper estimates the effects of NAFTA on labor and wages in Mexico using a local labor-markets approach. While NAFTA offered greater export opportunities to Mexican firms that may raise employment, it also opened the door to increased import competition that may dampen employment gains. This paper finds that in the first decade of its existence, NAFTA had a net positive impact on domestic employment of 870,000 workers, an increase of 13.7%. Production workers in Mexican gained significantly, with employment increasing by 32.8%. The impacts of NAFTA varied by region, with employment gains accruing mostly to states in the northeast, northwest, and central east regions of Mexico, which traded more with NAFTA countries.
Subjects: 
International trade
NAFTA
import competition
local labor markets
JEL: 
F14
F16
F66
J23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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