publication . Preprint . 2010

Effect of NAFTA on Mexico's Income Distribution in the Presence of Migration

Garduno-Rivera, Rafael;
Open Access
  • Published: 01 Jan 2010
Abstract
This paper asks how NAFTA affected income distribution within Mexico considering changes in internal migration. Trade liberalization should theoretically increase the income of low-skilled workers in low-skilled labor-abundant developing countries. Thus, by increasing the wages of poorer workers, one might expect that trade will decrease income disparity. However, anecdotal evidence indicates that NAFTA increased the gap between rich and poor in Mexico. Understanding the distributional effects of NAFTA on regional income is particularly important in countries with high levels of geographic inequality, such as Mexico. Because trade may affect wages differently ac...
Subjects
free text keywords: Income Distribution, Regional Disparities, Trade Liberalization, Internal-Migration, Food Security and Poverty, International Relations/Trade,
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