Productivity effects on Mexican manufacturing employment |
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Authors: | Andr Varella Mollick Ren Cabral |
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Institution: | aDepartment of Economics and Finance, University of Texas-Pan American, 1201 W. University Dr., Edinburg, TX 78539-2999, USA;bTecnológico de Monterrey, Campus Monterrey, Escuela de Graduados en Administración Pública y Política Pública, Ave. Rufino Tamayo, Garza García, NL CP. 66269, Mexico |
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Abstract: | We examine the effects of labor productivity and total factor productivity (TFP) on employment across 25 Mexican manufacturing industries from 1984 to 2000. Employing panel data methods, several interesting findings emerge. First, we observe a strong and positive impact of NAFTA on employment. Second, productivity exerts a procyclical, positive effect on employment but this effect becomes smaller after NAFTA. Third, partitions of our sample according to capital-labor intensity suggest that industries which are less capital-intensive were affected negatively on impact by NAFTA but that productivity impacted employment positively after NAFTA. In contrast, more capital-intensive industries display these results in reverse. |
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Keywords: | Employment Labor productivity Mexico Total factor productivity Panel data methods |
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