Looking for Local Labor-Market Effects of NAFTA
39 Pages Posted: 31 Oct 2016 Last revised: 19 Nov 2016
Date Written: April 3, 2015
Using US Census data for 1990-2000, we estimate effects of NAFTA on US wages. We look for effects of the agreement by industry and by geography, measuring each industry’s vulnerability to Mexican imports, and each locality’s dependence on vulnerable industries. We find evidence of both effects, dramatically lowering wage growth for blue-collar workers in the most affected industries and localities (even for service-sector workers in affected localities, whose jobs do not compete with imports).
Keywords: NAFTA, Wage Growth, Local Labor Markets
JEL Classification: F16, F13, J31
Suggested Citation: Suggested Citation