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Capital and Labour Mobility and their Impacts on Mexico's Regional Labour Markets
Ist Teil von
The Journal of development studies, 2010-10, Vol.46 (9), p.1523-1542
Ort / Verlag
Abingdon: Routledge
Erscheinungsjahr
2010
Link zum Volltext
Quelle
EBSCOhost Business Source Ultimate
Beschreibungen/Notizen
This paper studies the effects of capital and labor mobility on real wages across Mexican states for the period 1997-2006. Employing dynamic panel data methods, we find: (1) strong positive effects on real wages from foreign direct investment (FDI) and from migration; (2) domestic and foreign migration provide similar wage effects; and (3) alternative partitions indicate that real wages are more sensitive to FDI-related fluctuations across states with relatively lower wages and migration levels. Overall, these results provide support that real wages respond positively to fluctuations in capital flows and labour movements as predicted from the theory.