Trade theories based on increasing returns have two predictions for regional economies: employment concentrates in industry centers and regional nominal wages are decreasing in transport costs to industry centers. The author tests these hypotheses using data on regional manufacturing in Mexico...

In this paper, we examine net emigration from Mexico over the period 1960 to 2000. The data are consistent with labor supply shocks having made a substantial contribution to Mexican emigration, accounting for two-fifths of Mexican labor flows to the United States over the last two decades of the...