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Wages and productivity in Mexican manufacturing

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  • Lopez-Acevedo, Gladys

Abstract

The author identifies the determinants of wages and productivity in Mexico over time using national representative linked employer-employee databases from the manufacturing sector. She shows that both employers and employees are benefiting from investments in education, training, work experience, foreign research and development, and openness after the North American Free Trade Agreement (NAFTA). Additional years of schooling have a higher impact on wages and productivity after NAFTA than before. Endogenous training effects are larger for productivity than for wages, suggesting that the employers share the costs and returns to training. The author also finds that investment in human capital magnifies technology-driven productivity gains. By comparing four regions of Mexico-north, center, south, and Mexico City-regional wage and productivity gaps are found to have increased over time.

Suggested Citation

  • Lopez-Acevedo, Gladys, 2003. "Wages and productivity in Mexican manufacturing," Policy Research Working Paper Series 2964, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2964
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    References listed on IDEAS

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    Cited by:

    1. Hugo Ñopo & Miguel Robles & Jaime Saavedra, 2008. "Occupational training to reduce gender segregation: The impacts of ProJoven," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, issue 62, pages 33-54.
    2. Maliranta, Mika & Asplund, Rita, 2007. "Training and Hiring Strategies to Improve Firm Performance," Discussion Papers 1105, The Research Institute of the Finnish Economy.
    3. Sebastián Calónico & Hugo Ñopo, 2009. "Gender segregation in the workplace and wage gaps: evidence from urban Mexico 1994–2004," Research on Economic Inequality, in: Occupational and Residential Segregation, pages 245-270, Emerald Group Publishing Limited.
    4. Sebastian Calonico & Hugo Ñopo, 2008. "Segregación de genero en el trabajo y diferenciales de salario: Evidencia de las zonas urbanas de Mexico 1994-2004," Research Department Publications 4580, Inter-American Development Bank, Research Department.
    5. Hong Tan & Lopez-Acevedo, Gladys, 2003. "Mexico : in-firm training for the knowledge economy," Policy Research Working Paper Series 2957, The World Bank.

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