The Effect of Industrialization on Children’s Education – The Experience of Mexico

We use census data to examine the impact of industrialization on children’s education in Mexico. We find no evidence of reverse causality in this case. We find small positive effects of industrialization on primary education, effects which are larger for domestic manufacturing than for export-intensive assembly(maquiladoras). In contrast, teen-aged girls in Mexican counties(municipios) with more growth in maquiladora employment 1990-2000 have significantly less educational attainment than do girls in low-growth counties. These results shed light on literatures analyzing the impacts of industrialization, foreign investment, and intra-household bargaining power.