Employment Responses of Skilled and Unskilled Workers at Mexican Maquiladoras: The Effects of External Factors
Summary This paper compares a standard labor demand model to another augmented by the real exchange rate (RER) when studying the growth of dynamic Mexican maquiladoras from 1990 to 2006. The basic question is whether the real value of the peso changes the responses of employment to wages and to capital. In the augmented models, skilled labor employment becomes very sensitive to its own wages. Also, the user cost of capital has a larger negative impact on skilled employment, and a weaker currency has a negative impact on unskilled employment only. Overall, skilled labor benefits relatively more under globalization.
Year of publication: |
2009
|
---|---|
Authors: | Mollick, André Varella |
Published in: |
World Development. - Elsevier, ISSN 0305-750X. - Vol. 37.2009, 7, p. 1285-1296
|
Publisher: |
Elsevier |
Keywords: | employment labor demand maquiladoras Mexico real exchange rate |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
China's exports and the oil price
Faria, João Ricardo, (2008)
-
The impact of crime and other economic forces on Mexico's foreign direct investment inflows
Cabral Torres, René, (2018)
-
Systematic and idiosyncratic risks of the U.S. Airline industry
Bhuyan, Rafiqul, (2022)
- More ...