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The effect of FDI on low and high-skilled employment and wages in Mexico : a study for the manufacture and service sectors

Author

Listed:
  • Saucedo, Eduardo

    (EGADE Business School, Tecnologico de Monterrey)

  • Ozuna, Teofilo jr.

    (EGADE Business School, Tecnologico de Monterrey)

  • Zamora, Hector

    (EGADE Business School, Tecnologico de Monterrey)

Abstract

"Large variation in the estimated income premium of occupational licensing can be found in the existing literature. I revisit the natural experimental design of a change in the German crafts regulation in 2004, which removed the traditional licensing requirement for self-employment in certain trades, using official survey data and difference-indifferences estimation. Previous studies of this deregulation have found significant, yet small effects on the incomes of employees in deregulated trades. I focus on the incomes of the self-employed and find no robust effects. Multiple channels through which occupational licensing may affect incomes such as price and quality competition in the regulated market and possible competitive pressure from outsiders are identified, which may also explain why the effects of occupational licensing on incomes appear to be context-specific." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Saucedo, Eduardo & Ozuna, Teofilo jr. & Zamora, Hector, 2020. "The effect of FDI on low and high-skilled employment and wages in Mexico : a study for the manufacture and service sectors," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54(1), pages 1-9.
    • Handle: RePEc:iab:iabjlr:v:54:p:art.09
    DOI: 10.1186/s12651-020-00273-x
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    References listed on IDEAS

    as
    1. Marek Zapletal, 2017. "The Effects of Occupational Licensing Evidence from Detailed Business-Level Data," Working Papers 17-20, Center for Economic Studies, U.S. Census Bureau.
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    Citations

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    Cited by:

    1. Niaz Morshed & Mohammad Razib Hossain, 2022. "Causality analysis of the determinants of FDI in Bangladesh: fresh evidence from VAR, VECM and Granger causality approach," SN Business & Economics, Springer, vol. 2(7), pages 1-28, July.
    2. J. Eduardo Ibarra‐Olivo & Andrés Rodríguez‐Pose, 2022. "FDI and the growing wage gap in Mexican municipalities," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1411-1439, December.
    3. Thi Bich Thuy Dao & Van Quy Khuc & Manh Cuong Dong & Thuy Linh Cao, 2023. "How Does Foreign Direct Investment Drive Employment Growth in Vietnam’s Formal Economy?," Economies, MDPI, vol. 11(11), pages 1-15, October.

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    More about this item

    Keywords

    Mexiko ; Auslandsinvestitionen ; Auswirkungen ; Beschäftigungseffekte ; Dienstleistungsbereich ; Einkommenseffekte ; Hochqualifizierte ; Niedrigqualifizierte ; produzierendes Gewerbe ; regionaler Vergleich ; qualifikationsspezifische Faktoren ; 2005-2018;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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