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Import Shocks and Gendered Labor Market Responses: Evidence from Mexico

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  • Heckl, Pia

Abstract

This paper studies gender differences in labor market responses of workers in Mexico to trade liberalization with China. To measure exposure to import competition, I exploit variation in the initial industry structure of Mexican local labor markets. I show that aggregate outcomes mask heterogeneous responses based on gender. Both women and men experience lower growth in employment shares but the change in the labor force participation rate is negatively affected for men and positively affected for women. Further analysis shows that women move into self-employment and that informal employment acts as a “buffer” to attenuate negative employment effects, especially for male workers.

Suggested Citation

  • Heckl, Pia, 2024. "Import Shocks and Gendered Labor Market Responses: Evidence from Mexico," Labour Economics, Elsevier, vol. 88(C).
  • Handle: RePEc:eee:labeco:v:88:y:2024:i:c:s0927537124000319
    DOI: 10.1016/j.labeco.2024.102536
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    More about this item

    Keywords

    Import shock; Gender inequality; Labor market; Informal work; Mexico;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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