This paper develops a model of ownership based on incomplete contracts, specific investments, and risk and tests the model using data on industrial subcontracting in Mexico. The choice of ownership structure involves a trade-off between minimizing holdup risk and spreading natural risk....

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...

This paper investigates the link between the trend in the returns to education and foreign competition in concentrated industries. The authors argue that the impact of foreign competition on the relative wages of less skilled workers depends on the market structure of the industry penetrated....

The socioeconomic performance of today's workers depends not only on parental skills but also on the average skills of the ethnic group in the parents' generation (or ethnic capital). This paper investigates the link between the ethnic externality and ethnic neighborhoods. The evidence indicates...

This paper analyzes the way in which the earnings of the immigrant population may be expected to differ from the earnings of the native population because of the endogeneity of the migration decision. The conditions that determine the nature of the self-selection are derived and depend on...