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A great deal has been written about the effects of foreign migration on the wages of U.S. workers. However, little is known about the effects of Mexican interstate immigration (i.e., internal Mexican migration) and international return migration of labor and foreign capital on wages and employment in the maquiladora industry in Mexico. We examine these issues by first computing cost and demand functions for Mexican skilled and unskilled labor in the Textile maquiladora industry in 20 Mexican states and the Food, Beverage, and Tobacco industry in 10 Mexican states for 1998-2001. In both industries we find that the demand for skilled workers is more elastic than that for unskilled workers and that foreign direct investment is beneficial for skilled workers, increasing their demand and relative wage. Separately, using the 2000 Mexican Census, we estimate the effect of migration on the equilibrium wage and employment of each labor type in the manufacturing industry labor market. We find that interstate immigration and international return migration have a positive effect on wages. A combination of these two models allows calculation of the effects of labor and capital migration on the demand for each factor and changes in factor wage and employment shares. We find that wages and employment in the maquiladora industry have remained relatively constant due to substantial migrant inflows in all but one Mexican state, where substantial reductions in the wage of unskilled labor and the quantity of skilled labor have occurred.
Here is a one-stop research resource on the assembly and manufacturing plants on the U.S.-Mexico border, termed Maquiladoras. A combination bibliography and directory, Las Maquiladoras focuses on various aspects of the American-owned companies that are located in Mexico and employ Mexican citizens.While the thrust of the items included in the select bibliography is on the industrial, commercial, and financial aspects of the phenomenon, including the actions of multinational corporations and their investments, there are also entries dealing with the matter of labor, United States and Mexican governmental undertakings, legal and urban problems, regional development and planning, population, technology transfer, sociocultural considerations, and the interdisciplinary field of border studies, which is concerned with a host of topics ranging form health and education to urban geography, economic matters, and the cultural impact on border residents of the establishment of maquiladoras. The impact of economic development, industrialization, and urbanization on border culture is also reflected.In the directory, readers can locate names and addresses of local, state, and federal level government agencies in the U.S. and Mexico; information centers; labor unions; professional associations; and research centers.The bibliography, comprised of books and book chapters, pamphlets, conference papers and proceedings, government publications, scholarly dissertations, videotapes of television programs, and magazine, journal, and newspaper articles, will be an indispensable tool for business people, bankers, journalists, government experts, economists, students, and librarians. The current interest in border studies and in Mexico, in particular, will make this unique book especially useful to scholars of folklore, geography, history, labor, political science, and sociology.Special features in the book include a list of experts in a variety of disciplines and a listing of U.S. and Mexican cities and towns on opposite sides of the border. Because the number of maquiladoras is expected to continue expanding rapidly, this volume should remain a highly valuable resource.
This pioneering volume presents an in-depth examination of the maquiladora phenomenon written by experts on the subject. The contributors focus on three vital dimensions of the maquiladora issue: the impact of the maquilas on workers and economic development in both the U.S. and Mexico; the success or failure of the maquilas on an industry by industry basis; and the strategic aspects of the maquiladora program from geopoltical and macroeconomic perspectives. The controversial aspects of the maquilas--their impact on local pollution, unemployment and labor market exploitation--also receive extended coverage.
The maquiladora program, composed of assembly plants located in Mexico, is the result of special provisions in both Mexican and American law. This program plays a central role in a new development program, chosen by the Mexican government, based on an outward-oriented development strategy and liberalization of the economy. The broad objectives of this program are to provide sources of employment (particularly in the border zone), to generate foreign exchange, and to create linkages between the maquiladora industry and the rest of the Mexican economy. Maquiladoras have been the center of a great deal of controversy in both countries since their 1965 inception. This controversy is centered mainly on benefits and costs on these countries. Particularly in the case of Mexico, there is no unique answer to the question: is the maquiladora program an adequate development strategy? This study focuses on an empirical assessment of the maquiladora program. Estimation of impacts on value of output, income, and employment within the Mexican economy is the major contribution of this research. General multipliers for the Mexican economy are estimated and the role of the Maquiladoras is discussed. Additionally, two simulations are addressed: (1) increased maquiladora purchases within Mexico and (2) earnings leakage to the United States. The methodology used to address the objectives of this study is an interindustry (input-output) model for the Mexican economy that accounted for the maquiladora linkages with the economy. An input-output model was developed for the Mexican economy. To account the economic impacts of the maquiladora program the model includes 29 sectors. Twelve of these represent the economic activity of maquiladora industries. The results indicate that maquiladoras have relatively low output multipliers. About 33% of their total value of output resulted from secondary effects with other linked sectors in the Mexican economy. Of this, indirect output generated through maquiladora's input purchases was 7% and induced output generated through maquiladora workers purchases of goods and services was 26%. Maquiladoras also have relatively low impacts on the Mexican households income because of relatively low domestic input purchases. On average, maquiladora sectors are more capital intensive than the rest of the Mexican economy. This and their weak backward linkages resulted in relatively low employment impacts. Maquiladora workers spendings impacts were about 2.6 times larger than maquiladora input purchases impacts ...
Documents the development of the maquila industries from the mid 1960s to the 1990s. Evaluates their impact on economic development in Mexico, and, in particular whether the policy to promote them constitutes a viable development strategy. Also considers the effect of the industries on their U.S. counterparts.