Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
962538 | Journal of International Economics | 2008 | 24 Pages |
Abstract
In this paper, I study what factors determined the changes in Mexico's regional wage differentials during the nineties. I exploit the regional variation in exposure to international markets to identify the effects of NAFTA on wages and the skill premium. The results support the presence of Stolper-Samuelson type of responses during Mexico's trade liberalization: regions more exposed to globalization appear to have exhibited an increase in overall wage levels, but a decrease in the skill premium, relative to other regions of the country. The results suggest that trade liberalization has a spatial dimension that is usually neglected in traditional models.
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Authors
Daniel Chiquiar,