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Some benefit, some are left behind: NAFTA and educational attainment in the United States

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  • Leopoldo Gómez‐Ramírez
  • María Padilla‐Romo

Abstract

This paper examines the persistent effects of eliminating tariffs on Mexican imports, following the implementation of the North American Free Trade Agreement (NAFTA), on Americans' human capital investment. We leverage quasi‐experimental changes in tariffs on Mexican imports across birth cohorts and within states. We show that NAFTA increases the probability of ever attending college and earning a degree. These results, however, mask important heterogeneous effects within the sample. We find white Americans drive these positive effects. In contrast, the educational attainment of racial and ethnic minorities, especially men, shrank under NAFTA, decreasing their probability of graduating from high school.

Suggested Citation

  • Leopoldo Gómez‐Ramírez & María Padilla‐Romo, 2022. "Some benefit, some are left behind: NAFTA and educational attainment in the United States," Economic Inquiry, Western Economic Association International, vol. 60(4), pages 1581-1606, October.
    • Handle: RePEc:bla:ecinqu:v:60:y:2022:i:4:p:1581-1606
    DOI: 10.1111/ecin.13093
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