TY  - JOUR
AU  - Hanson,Gordon H.
TI  - Globalization, Labor Income, and Poverty in Mexico
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11027
PY  - 2005
Y2  - January 2005
UR  - http://www.nber.org/papers/w11027
L1  - http://www.nber.org/papers/w11027.pdf
N1  - Author contact info:
Gordon H. Hanson
IR/PS 0519
University of California, San Diego
9500 Gilman Drive
La Jolla, CA  92093-0519
Tel: 858/822-5087
Fax: 858/534-3939
E-Mail: gohanson@ucsd.edu
M1  - published as Gordon H. Hanson. "Globalization, Labor Income, and Poverty in Mexico," in Ann Harrison, editor, "Globalization and Poverty" University of Chicago Press (2007)

AB  - In this paper, I examine changes in the distribution of labor income across regions of Mexico during the country's decade of globalization in the 1990's. I focus the analysis on men born in states with either high-exposure or low-exposure to globalization, as measured by the share of foreign direct investment, imports, or export assembly in state GDP. Controlling for regional differences in the distribution of observable characteristics and for initial differences in regional incomes, the distribution of labor income in high-exposure states shifted to the right relative to the distribution of income in low-exposure states. This change was primarily the result of a shift in mass in the income distribution for low-exposure states from upper-middle income earners to lower income earners. Labor income in low-exposure states fell relative to high-exposure states by 10% and the incidence of wage poverty (the fraction of wage earners whose labor income would not sustain a family of four at above-poverty consumption levels) in low-exposure states increased relative to high-exposure states by 7%.
ER  -