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Globalization, Labor Income, and Poverty in Mexico

Globalization, Labor Income, and Poverty in Mexico

Chapter:
(p.417) 10 Globalization, Labor Income, and Poverty in Mexico
Source:
Globalization and Poverty
Author(s):
Gordon H. Hanson
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226318004.003.0011

This chapter investigates the different outcomes for individuals born in Mexican states with high exposure to globalization versus individuals born in states with low exposure to globalization between 1990 and 2000. High exposure to globalization does not indicate high exposure to emigration. In Mexico regions, more exposed to globalization have done better in terms of income growth. During Mexico's globalization decade, individuals born in states with high exposure to globalization appear to have done much better than individuals born in states with low exposure to globalization. Thus, they did relatively well in terms of their labor earnings. Labor income in low-exposure states fell relative to high-exposure states by 8–12 percent, and the incidence of wage poverty increased in low-exposure states relative to high-exposure states by 7 percent.

Keywords:   globalization, Mexico, labor income, labor earnings, wage poverty

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