2019
DOI: 10.20472/es.2019.8.1.009
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Effect of Nafta on Mexico´s Wage Inequality

Abstract: One of the benefits that the signing of the North American Free Trade Agreement (NAFTA) would bring to the country was the reduction of large differences in wages as a result of the increase in productivity. The present study measures the effect of demographic, labor, and sector variables on Mexico's wage inequality during the period 1988 to 2017, as well as the impact that the incorporation to NAFTA has had. Through a fixed effects model, it was found that the increase in the proportion of people working in t… Show more

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Cited by 2 publications
(2 citation statements)
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“…In a broader sense, the article contributes to the literature on the impact of economic openness on within‐country income inequalities. Regarding regional integration initiatives, empirical studies usually analyse non‐European cases of economic integration processes in the world, most commonly the North American Free Trade Agreement, NAFTA (see Feenstra & Hanson, 1996, 1997, 1999 or more recently Rodriguez‐Villalobos et al, 2019) or focus on the average impact of regional and preferential trade agreements on income inequalities (see Lee & Kim, 2016; Mon & Kakinaka, 2020). As far as general openness or globalisation is concerned, a detailed review of the literature is provided by Helpman et al (2010), Harrison et al (2011), Helpman (2016), and Aleman‐Castilla (2020).…”
Section: Introductionmentioning
confidence: 99%
“…In a broader sense, the article contributes to the literature on the impact of economic openness on within‐country income inequalities. Regarding regional integration initiatives, empirical studies usually analyse non‐European cases of economic integration processes in the world, most commonly the North American Free Trade Agreement, NAFTA (see Feenstra & Hanson, 1996, 1997, 1999 or more recently Rodriguez‐Villalobos et al, 2019) or focus on the average impact of regional and preferential trade agreements on income inequalities (see Lee & Kim, 2016; Mon & Kakinaka, 2020). As far as general openness or globalisation is concerned, a detailed review of the literature is provided by Helpman et al (2010), Harrison et al (2011), Helpman (2016), and Aleman‐Castilla (2020).…”
Section: Introductionmentioning
confidence: 99%
“…Those trends are reflected in a newly targeted concept of Industry 4.0 [1,2]. This mainly happens at the expense of business ethics, natural resources, humanitarian principles, climate issues, and other influences [3][4][5][6]. From the point of view of the development of theory in economics, it is useful to admit that these are known as dynamic issues, but their forecasts are not known.…”
Section: Introductionmentioning
confidence: 99%