Can Maquila Booms Reduce Poverty? Evidence from Honduras

23 Pages Posted: 20 Apr 2016

See all articles by Rafael E. De Hoyos

Rafael E. De Hoyos

United Nations - United Nations University (UNU)

Maurizio Bussolo

World Bank - Chief Economist Office for Europe and Central Asia

Oscar Nunez

affiliation not provided to SSRN

Date Written: December 1, 2008

Abstract

This paper identifies and estimates the strength of the reduction in poverty linked to improved opportunities for women in the expanding maquila sector. A simulation exercise shows that, at a given point in time, poverty in Honduras would have been 1.5 percentage points higher had the maquila sector not existed. Of this increase in poverty, 0.35 percentage points is attributable to the wage premium paid to maquila workers, 0.1 percentage points to the wage premium received by women in the maquila sector, and 1 percentage point to employment creation. Given that female maquila workers represent only 1.1 percent of the active population in Honduras, this contribution to poverty reduction is significant.

Keywords: Rural Poverty Reduction, Population Policies, Achieving Shared Growth

Suggested Citation

De Hoyos, Rafael E. and Bussolo, Maurizio and Nunez, Oscar, Can Maquila Booms Reduce Poverty? Evidence from Honduras (December 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1312272

Rafael E. De Hoyos (Contact Author)

United Nations - United Nations University (UNU) ( email )

Tokyo, 150-8925
Japan

Maurizio Bussolo

World Bank - Chief Economist Office for Europe and Central Asia ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://https://blogs.worldbank.org/team/maurizio-bussolo

Oscar Nunez

affiliation not provided to SSRN ( email )

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