Labor Market Integration between Northern Mexico and Southern United States: an empirical investigation

In this paper, the analysis of co-dependence between the US and Mexico labor markets is carried out by estimating the cyclical component of California’s and Texas’ manufacturing employment and four US Border Mexican cities through the Hodrick-Prescott filter. We estimated the smoothing parameter fol...

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Autores principales: Walter Cortez, Willy, Islas Camargo, Alejandro
Formato: Artículo
Lenguaje:español
Publicado: Universidad Autónoma de Nuevo León 2009
Materias:
Acceso en línea:https://ensayos.uanl.mx/index.php/ensayos/article/view/95
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author Walter Cortez, Willy
Islas Camargo, Alejandro
author_facet Walter Cortez, Willy
Islas Camargo, Alejandro
author_sort Walter Cortez, Willy
collection Artículos de Revistas UANL
description In this paper, the analysis of co-dependence between the US and Mexico labor markets is carried out by estimating the cyclical component of California’s and Texas’ manufacturing employment and four US Border Mexican cities through the Hodrick-Prescott filter. We estimated the smoothing parameter following a calibration technique proposed by Guerrero et al (2001) which allows us to obtain the best linear unbiased estimator of the trend component. Our analysis suggests that after 1994 there has been greater labor market integration between Mexico’s northern region and US’ southern region. This greater integration has implied a change in the nature of the short term relationship of manufacturing employment between Mexico and the US. The change is also significant on the relationship between Mexican real wages and US employment.  
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physical Ensayos Revista de Economía; Vol. 28 No. 1 (2009): MAY 2009; 21-60
Ensayos Revista de Economía; Vol. 28 Núm. 1 (2009): MAYO 2009; 21-60
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spelling ensayos-article-952023-12-11T11:07:04Z Labor Market Integration between Northern Mexico and Southern United States: an empirical investigation Walter Cortez, Willy Islas Camargo, Alejandro Vertical FDI Labor market integration Hodrick-Prescott filter Latin America US-Mexico border. In this paper, the analysis of co-dependence between the US and Mexico labor markets is carried out by estimating the cyclical component of California’s and Texas’ manufacturing employment and four US Border Mexican cities through the Hodrick-Prescott filter. We estimated the smoothing parameter following a calibration technique proposed by Guerrero et al (2001) which allows us to obtain the best linear unbiased estimator of the trend component. Our analysis suggests that after 1994 there has been greater labor market integration between Mexico’s northern region and US’ southern region. This greater integration has implied a change in the nature of the short term relationship of manufacturing employment between Mexico and the US. The change is also significant on the relationship between Mexican real wages and US employment.   Universidad Autónoma de Nuevo León 2009-05-01 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article Artículo arbitrado por pares application/pdf https://ensayos.uanl.mx/index.php/ensayos/article/view/95 10.29105/ensayos28.1-3 Ensayos Revista de Economía; Vol. 28 No. 1 (2009): MAY 2009; 21-60 Ensayos Revista de Economía; Vol. 28 Núm. 1 (2009): MAYO 2009; 21-60 2448-8402 1870-221X spa https://ensayos.uanl.mx/index.php/ensayos/article/view/95/80 Derechos de autor 2009 Willy Walter Cortez, Alejandro Islas Camargo https://creativecommons.org/licenses/by/4.0
spellingShingle Vertical FDI
Labor market integration
Hodrick-Prescott filter
Latin America
US-Mexico border.
Walter Cortez, Willy
Islas Camargo, Alejandro
Labor Market Integration between Northern Mexico and Southern United States: an empirical investigation
thumbnail https://rediab.uanl.mx/themes/sandal5/images/article.gif
title Labor Market Integration between Northern Mexico and Southern United States: an empirical investigation
title_full Labor Market Integration between Northern Mexico and Southern United States: an empirical investigation
title_fullStr Labor Market Integration between Northern Mexico and Southern United States: an empirical investigation
title_full_unstemmed Labor Market Integration between Northern Mexico and Southern United States: an empirical investigation
title_short Labor Market Integration between Northern Mexico and Southern United States: an empirical investigation
title_sort labor market integration between northern mexico and southern united states an empirical investigation
topic Vertical FDI
Labor market integration
Hodrick-Prescott filter
Latin America
US-Mexico border.
topic_facet Vertical FDI
Labor market integration
Hodrick-Prescott filter
Latin America
US-Mexico border.
url https://ensayos.uanl.mx/index.php/ensayos/article/view/95
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