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Abstract:
We use data from the 2000 Mexican Census to examine how the education and socioeconomic status of Mexican immigrants to the United States compares to that of non-migrants in Mexico. Our primary conclusion is that migrants tend to be less educated than non-migrants. This finding is consistent with the idea that the return to education is higher in Mexico than in the United States, and thus the wage gain to migrating is proportionately smaller for high-educated Mexicans than it is for lower-educated Mexicans. We also find that the degree of negative selection of migrants is stronger in Mexican counties that have a higher return to education.

Migration, Self-selection, Mexico, Roy model

Abstract:
We use data from the 2000 Mexican Census to examine how the education and socioeconomic status of Mexican immigrants to the United States compares to that of non-migrants in Mexico. Our primary conclusion is that migrants tend to be less educated than non-migrants. This finding is consistent with the idea that the return to education is higher in Mexico than in the United States, and thus the wage gain to migrating is proportionately smaller for high-educated Mexicans than it is for lower-educated Mexicans. We also find that the degree of negative selection of migrants is stronger in Mexican counties that have a higher return to education.

Abstract:
This paper summarizes the findings from the first randomized evaluation of a job training program in Latin America. Between 2001 and 2005 the government of the Dominican Republic operated a subsidized training program for low-income youth in urban areas. The program featured several weeks of classroom instruction followed by an internship at a private sector firm. A random sample of eligible applicants was selected to undergo training, and information was gathered 10-14 months after graduation on both trainees and control group members. Although previous non-experimental evaluations of similar programs in Latin America have suggested a positive impact on employment, we find no evidence of such an effect. There is a marginally significant impact on hourly wages, and on the probability of health insurance coverage, conditional on employment. Finally, we develop an operational definition of the impact of training on "employability" in the context of a dynamic model with state dependence and unobserved heterogeneity. Consistent with our main results, we find no significant impact of the training program on the subsequent employability of trainees.

Abstract:
Very little is known about the effectiveness of SME policies, and a careful look at the structure, mechanisms and incentives provided by these policies suggest caution in their implementation and, most importantly, the need to carefully and closely monitor their results. This paper relies on the microeconometric analysis of a homogeneous dataset of sixteen Latin American and Caribbean countries to analyze the magnitude and determinants of the productivity gap between large and SME firms and to simulate of the impact on productivity of various policy scenarios.

SMEs, SME policy, productivity, Latin America

Abstract:
In this paper we study the effect of NAFTA on the responsiveness of Mexican economy to real exchange rate shocks. We argue that, by opening the U.S. and Canadian markets to Mexican goods, NAFTA made it easier for domestic producers to take advantage of the opportunities brought by the depreciation of the real exchange rate. To identify this mechanism, we use plant-level data and compare the behavior of employment, production and investment after two big real exchange rate shocks: the first observed in the mid 1980s, the second the Tequila Crisis of 1994-5. The evidence indicates that after passage of NAFTA exporting firms exhibited higher growth rates of employment, sales, and investment vis-á-vis non-exporters. We confirm our results by analyzing the behavior of a control group of firms, that had complete access to the U.S. market during both devaluations, and we show that they responded in a similar way in both events. Finally, we also provide direct evidence on the relationship between exports and tariff reductions brought by NAFTA. Our results support the view that NAFTA has allowed Mexican producers to respond more quickly to real exchange shocks.

NAFTA, RER Shocks, Tequila Crisis, external adjustment, firm-level evidence of effects of RER Shocks