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2. An Independent Union Wins Landslide Victory Among MexicanGM Workers
- Author:
- Dan DiMaggio and Luis Feliz Leon
- Publication Date:
- 02-2022
- Content Type:
- Commentary and Analysis
- Institution:
- The North American Congress on Latin America (NACLA)
- Abstract:
- The vote by auto workers in Guanajuato to replace the previous employee-friendly union with the National Auto Workers Union in early February is a breakthrough for labor rights.
- Topic:
- Labor Issues, Industry, Labor Rights, Workforce, and Labor Unions
- Political Geography:
- North America and Mexico
3. Do Credit Supply Shocks Affect Employment in Middle-Income Countries?
- Author:
- Emilio Gutierrez, David Jaume, and Martin Tobal
- Publication Date:
- 04-2021
- Content Type:
- Working Paper
- Institution:
- Center for Distributive, Labor and Social Studies (CEDLAS)
- Abstract:
- This paper studies the extent to which increases in bank credit supply available for small and medium firms can foster formal employment in Mexico. We use a detailed dataset containing loan-level information for all loans extended by commercial banks to private firms in Mexico during the 2010-2016 period, when the economy was relatively stable. To obtain exogenous variation in credit supply, we exploit differences in the regional presence of Mexican banks across local labor markets by combining pre-existing market shares with national-level changes in banks’ credit supply, after accounting for local credit demand shocks. Then, we use employment registry data to compare changes in the number of formal workers registered by small and medium firms in local labor markets differently exposed to these shocks. We find that credit supply shocks have a large impact on formal employment: a positive credit shock of one standard deviation increases yearly employment growth by 0.45 percentage points (13 percent of the mean). Our results differ from the null to small effects identified by previous literature for developed countries, suggesting that credit supply shocks play a more prominent role for employment creation (and destruction) in low and middle-income countries.
- Topic:
- Labor Issues, Employment, and Credit
- Political Geography:
- North America and Mexico
4. The Political Economy of Inequality in Chile and Mexico: Two Tales of Neoliberalism
- Author:
- Giorgos Gouzoulis and Collin Constantine
- Publication Date:
- 05-2020
- Content Type:
- Working Paper
- Institution:
- School of Oriental and African Studies - University of London
- Abstract:
- This article offers a historical and econometric study on the determinants of functional income inequality in Chile and Mexico between 1980-2011. This is the first study on the determinants of the labour share in developing economies using single- country analysis that covers the historical period before 1990. We find robust evidence that government consumption is a positive driver of the respective wage shares. Since Chile has experienced persistent cuts in government welfare as opposed to Mexico, fiscal austerity is a fundamental explanation for its falling wage share. Private debt is the second most important explanation for why wage shares have fallen in Chile. We find no evidence of this channel in the Mexican case. However, globalisation has exposed Mexico’s labour-intensive industries to wage competition and this lowers its wage share. In contrast, Chile’s commodity exports and wage share have benefitted from trade globalisation. These comparative results demonstrate the importance of country-level studies as each country’s historical evolution and varied implementation of neoliberalism can tell unique distributional stories and provide more accurate policy insights for an inclusive growth strategy.
- Topic:
- Political Economy, Labor Issues, Inequality, and Neoliberalism
- Political Geography:
- South America, North America, Mexico, and Chile
5. Great Expectations and Grim Realities in AMLO's Mexico
- Author:
- Mary Speck
- Publication Date:
- 05-2019
- Content Type:
- Working Paper
- Institution:
- Center for Strategic and International Studies
- Abstract:
- Mexican president Andrés Manuel López Obrador, commonly known as AMLO, assumed office in December 2018 with a robust electoral mandate having trounced traditional parties and secured a clear majority in the Mexican Congress. With approval ratings at about 80 percent, López Obrador seems so far to be satisfying his supporters’ expectations.1 To the delight of those disgusted with elite privileges, AMLO flies commercial (in coach), plans to sell the presidential plane, and slashed the salaries of top officials (including his own), putting their government vehicles up for auction.2 He has acted quickly to redistribute wealth by increasing pensions for the elderly, offering scholarships or apprenticeships to millions of young people, and providing additional subsidies to marginalized small farmers.3 López Obrador has also solidified labor union support by reversing some of his predecessor’s most controversial “neo-liberal” measures. He suspended an education reform enacted to improve the country’s underperforming public schools.4 And he has started to undo an energy overhaul designed to modernize the state-dominated oil industry, promising workers that he will rescue the heavily indebted government company, Petróleos Mexicanos or Pemex, by investing billions in a new refinery to make the country self- sufficient in gasoline.5 But the new president still faces his toughest challenge: reducing violence in a country plagued by some of the world’s most vicious criminal gangs. About 230,000 people were murdered between 2008 and 2017, more than double the number killed in the previous decade.6 This tsunami of violence continues to crest: during the first quarter of 2019 homicides have risen nearly 10 percent from the same period in 2018.7 On security, Mexico’s radical new president has thus far offered more continuity than change. He favors the same top-down, militarized approach that failed to curb violence over the past decade. The government’s marquee security reform is the creation of a national guard with at least 50,000 members recruited largely from the armed forces. Under fire from human rights defenders, López Obrado agreed to place the force under the Secretariat of Security and Civilian Protection, though its commander will be General Luis Rodriguez Bucio, an active duty officer who is in the process of retiring.8 López Obrador has taken steps to address past atrocities (appointing a special prosecutor to investigate the 2014 killing of 43 students) and to prevent future abuses (signing an agreement with the UN to oversee the guard’s human rights training).9 But critics worry that a force led by and recruited from the military will simply reproduce past patterns of repression, gang fragmentation, and dispersion, followed by violent escalation. An iron-fist approach to crime, moreover, fails to address Mexico’s fundamental problem: rampant impunity. Government victimization surveys suggest that authorities fail to investigate more than 90 percent of the crimes committed, often because citizens don’t bother to report crimes to state or municipal police regarded as incompetent, impotent, or corrupt.10 More than a decade of federal military intervention has undermined, not strengthened, the country’s approximately 345,000 state and local police.11 Poorly trained, under-resourced, and often under threat themselves, municipal and state authorities have little incentive to combat Mexico’s increasingly diverse and localized criminal gangs. López Obrador must grapple with the reality that federal power alone is unlikely to bring violence under control. There is no populist playbook for building effective police and an efficient, fair judicial system. The criminal groups operating in Mexico have proven remarkably resilient, surviving the killing or arrest of cartel leaders by morphing into smaller factions that not only produce and transport illegal drugs for sale in the US market but also steal gasoline, derail and rob rail cars, run illegal mining and logging operations, and hold entire communities hostage to extortion and kidnapping rings. The United States has a huge stake in Mexico’s success: the criminal organizations responsible for rising violence in Mexico have also fueled a U.S. drug epidemic resulting in 72,000 fatal overdoses during 2017 alone. U.S. agencies have worked closely with Mexican police and military forces to capture drug kingpins; Congress has also appropriated nearly $3 billion in equipment, training, and capacity building assistance.12 This is only a fraction of the approximately $14 billion Mexico spends each year. But by accepting shared responsibility for the illegal drug trade—long a Mexican demand—the United States has secured cooperation on security issues that would have been unthinkable less than a generation ago. This article examines the evolution of security policy under Presidents Felipe Calderón, 2006-2012, and Enrique Peña Nieto, 2012-2018. López Obrador could learn much from his predecessors’ failures. Calderón began his term with a frontal attack on drug cartels, though he came to understand that Mexico could not control organized crime without social programs and institutional reforms. Peña Nieto initially promised demilitarization and violence prevention, but soon abandoned these efforts, reverting again to military intervention. Neither president strengthened the country’s embattled state and local police who are responsible for enforcing the law after federal troops depart.
- Topic:
- Labor Issues, Elections, Unions, and Liberalism
- Political Geography:
- North America and Mexico
6. Journal of Public and International Affairs 2018
- Author:
- Andi Zhou, Sam Kanson-Benanav, Collin Smith, Yi Xu, Amn Nasir, Sameer Anwar, Saim Rashid, Muqueet Shahzad, Lauren Eades, William O'Connell, Caper Gooden, Paige KW Gasser, Laurie Georges, Seleeke Flingai, and Erika Parks
- Publication Date:
- 05-2018
- Content Type:
- Journal Article
- Journal:
- Journal of Public and International Affairs (JPIA)
- Institution:
- School of Public and International Affairs (SPIA), Princeton University
- Abstract:
- These are critical times for those who work to further the public interest. Across the globe, divisions and distrust erode the clarity required to tackle the great challenges of our day. Those who advocate for truth find themselves under attack from those who fear what they might lose if the status quo is changed. There is exceptional need today for powerful voices speaking on behalf of sound policy. The 10 articles in this 29th edition of the Journal of Public and International Affairs all reflect a dogged determination among young policy professionals around the world to press ahead in spite of the headwinds. These pages contain fresh ideas on electrifying rural Myanmar, reforming the U.S. banking system, strengthening the Jordanian labor market, and preventing recidivism among convicted sex offenders in Texas, to name just a few. The JPIA was born from the conviction that graduate students have a unique and invaluable voice in key policy debates. The authors of these articles, together with the 45 editors from 13 graduate programs around the world who selected and reviewed them, will shape the future of economic, international, domestic, and development policy in the decades to come. We strive continually, especially at this moment, to amplify their voices.
- Topic:
- Development, International Cooperation, Nuclear Weapons, Treaties and Agreements, International Affairs, Bilateral Relations, Labor Issues, Business, Mental Health, Accountability, Public Sector, Hezbollah, Services, Electricity, Pollution, and Waste
- Political Geography:
- Pakistan, Africa, South Asia, Middle East, Canada, Brazil, South America, Central America, Lebanon, Mozambique, North America, Mexico, Jordan, Southeast Asia, Myanmar, and United States of America
7. Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion
- Author:
- Michael Clemens, Ethan Lewis, and Hannah Postel
- Publication Date:
- 03-2017
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- An important class of active labor market policy has received little rigorous impact evaluation: immigration barriers intended to improve the terms of employment for domestic workers by deliberately shrinking the workforce. Recent advances in the theory of endogenous technical change suggest that such policies could have limited or even perverse labor market effects, but empirical tests are scarce. We study a natural experiment that excluded almost half a million Mexican ‘bracero’ seasonal agricultural workers from the United States, with the stated goal of raising wages and employment for domestic farm workers. We build a simple model to clarify how the labor market effects of bracero exclusion depend on assumptions about production technology, and test it by collecting novel archival data on the bracero program that allow us to measure state-level exposure to exclusion for the first time. We reject the wage effect of bracero exclusion required by the model in the absence of induced technical change, and fail to reject the hypothesis that exclusion had no eect on US agricultural wages or employment. Important mechanisms for this result include both adoption of less labor-intensive technologies and shifts in crop mix.
- Topic:
- Labor Issues, Immigration, and Financial Markets
- Political Geography:
- Mexico
8. Labour income inequality in Mexico: Puzzles solved and unsolved
- Author:
- Raymundo M. Campos-Vazquez and Nora Lustig
- Publication Date:
- 11-2017
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- We analyse the evolution and proximate determinants of labour income inequality in Mexico between 1989 and 2017. Labour income inequality increased between 1989 and 1994 and declined between 1994 and 2006. What happened after 2006 is subject to uncertainty. The national labour force survey shows a steady decline and the income expenditure survey suggests that inequality increased. We correct for high and rising item (labour income) non-response and under-representation of high-wage earners through a ‘hot deck’ imputation method and post-survey weight adjustments. We obtain the new weights for formal workers from tabulations recently released by the Mexican social security administration. For informal workers, we correct using the hot deck imputation method. With corrected data, inequality no longer declines between 2006 and 2017.
- Topic:
- Labor Issues, Inequality, Income Inequality, and Survey
- Political Geography:
- Central America and Mexico
9. Shared Border, Shared Future: A Blueprint to Regulate US-Mexico Labor Mobility
- Author:
- Carlos Gutierrez, Ernesto Zedillo, and Michael Clemens
- Publication Date:
- 09-2016
- Content Type:
- Special Report
- Institution:
- Center for Global Development
- Abstract:
- Mexico and the United States have lacked a bilateral agreement to regulate cross-border labor mobility since 1965. Since that time, unlawful migration from Mexico to the US has exploded. Almost half of the 11.7 million Mexican-born individuals living in the U.S. do not have legal authorization. This vast black market in labor has harmed both countries. These two neighboring countries, with an indisputably shared destiny, can come together to work out a better way. The time has come for a lasting, innovative, and cooperative solution. To address this challenge, the Center for Global Development assembled a group of leaders from both countries and with diverse political affiliations—from backgrounds in national security, labor unions, law, economics, business, and diplomacy—to recommend how to move forward. The result is a new blueprint for a bilateral agreement that is designed to end unlawful migration, promote the interests of U.S. and Mexican workers, and uphold the rule of law.
- Topic:
- International Political Economy, International Affairs, Labor Issues, and Border Control
- Political Geography:
- America and Mexico
10. Integrating Violence Prevention and Women’s Economic Empowerment: Lessons from Mexico
- Author:
- Peace and Security (GIWPS) Georgetown Institute for Women
- Publication Date:
- 01-2016
- Content Type:
- Special Report
- Institution:
- Georgetown Institute for Women, Peace and Security (GIWPS)
- Abstract:
- In the past two decades, female labor force participation has doubled in Mexico within the context of decreasing rates of violence against women. The World Bank, the World Health Organization, the Inter-American Development Bank, and other international actors have recognized that increasing female economic participation is one of the interventions needed to address violence against women in Latin America. However, there has been limited research conducted on the ways in which non-governmental organizations (NGOs) are already working to integrate violence prevention and economic empowerment, and the challenges they face in their work. The lack of knowledge of best practices and gaps on these issues impedes the government and organizations from replicating and scaling programs that work in tackling violence against women. The need for effective, evidence- based programming is critical, considering that violence against women affects almost half of Mexican women: 46.6% stated in 2011 that they had faced at least one form of violence.1 This gap in knowledge prompted the following research into current programs in Mexico that address women’s economic participation and/or violence against women. Several themes emerged from the semi-structured interviews with 16 key informants from NGOs working on these issues in Mexico. All the leaders recognized the need to integrate women’s economic empowerment and violence prevention. However, many organizations find it difficult to include violence prevention and/or economic empowerment in their programming due to sensitivity around violence against women, lack of resources, capacity, and expertise, and a lack of data that makes it challenging to make the business case for integration. Some organizations do not include violence prevention or economic empowerment in their theories of change, which causes these issues to be neglected even further. Finally, few organizations seem to be working on the issue of economic violence, due to the lack of media and policy attention it generates, and the lack of perceived urgency around the issue as compared to other forms of violence against women, such as trafficking, which receives more funding. Partnerships between violence prevention organizations and economic empowerment organizations are one solution to this issue, but they are rare due to NGOs’ lack of funding in this area and the non-profit world’s limited history with partnerships. Another constraining factor is NGOs’ small peer networks: they lack the network to expand or advocate for their work, especially with corporations. This report provides recommendations for organizations in Mexico working on violence prevention and/or women’s economic empowerment. Funders should direct more resources toward partnership building, capacity building, and data collection and research, and the prevention of economic violence. Organizations should review their theories of change, and see how violence prevention and/or economic empowerment can be incorporated into programs to strengthen effectiveness. They should consider increasing male participation in programming where possible, and take into account the different forms of violence, especially economic violence, when addressing violence in their programs.
- Topic:
- Economics, Labor Issues, Women, Empowerment, and Violence Prevention
- Political Geography:
- North America and Mexico
11. The Trans-Pacific Partnership Agreement (TPP) Negotiations: Overview and Prospects
- Author:
- Deborah Elms and C. L. Lim
- Publication Date:
- 02-2012
- Content Type:
- Working Paper
- Institution:
- Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
- Abstract:
- The Trans-Pacific Partnership (TPP) is a trade agreement currently under negotiation between nine countries in three continents, including Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, United States and Vietnam. In late 2011 three additional countries--Japan, Canada and Mexico--announced their intention to join as well. The TPP has always been called a "high quality, 21st century" agreement that covers a range of topics not always found in free trade agreements. This includes not just trade in goods, services and investment, but also intellectual property rights, government procurement, labor, environment, regulations, and small and medium enterprises. This paper traces the complex negotiations and evolution of the talks since the early 2000s to the present.
- Topic:
- Economics, Environment, International Trade and Finance, Treaties and Agreements, Labor Issues, and Intellectual Property/Copyright
- Political Geography:
- United States, Japan, Malaysia, Canada, Israel, Vietnam, Latin America, Australia, Australia/Pacific, Mexico, Singapore, Chile, Peru, New Zealand, and Brunei
12. Discovering Diverse Mechanisms of Migration: The Mexico-U.S. Stream from 1970 to 2000
- Author:
- Filiz Garip
- Publication Date:
- 12-2011
- Content Type:
- Working Paper
- Institution:
- Weatherhead Center for International Affairs, Harvard University
- Abstract:
- Migrants to the United States are a diverse population. This diversity, captured in various migration theories, is overlooked in empirical applications that describe a typical narrative for an average migrant. Using the Mexican Migration Project data from about 17,000 first-time migrants between 1970 and 2000, this study employs cluster analysis to identify four types of migrants with distinct configurations of characteristics. Each migrant type corresponds to a specific theoretical account, and becomes prevalent in a specific period, depending on the economic, social and political conditions. Strikingly, each migrant type also becomes prevalent around the period in which its corresponding theory is developed.
- Topic:
- Migration, Labor Issues, and Sociology
- Political Geography:
- United States and Mexico
13. Discovering Diverse Mechanisms of Migration: The Mexico-U.S. Stream from 1970 to 2000
- Author:
- Filiz Garip
- Publication Date:
- 09-2010
- Content Type:
- Working Paper
- Institution:
- Weatherhead Center for International Affairs, Harvard University
- Abstract:
- Migrants to the United States are a diverse population. This diversity, captured in various migration theories, is overlooked in empirical applications that describe a typical narrative for an average migrant. Using the Mexican Migration Project data from about 17,000 first-time migrants between 1970 and 2000, this study employs cluster analysis to identify four types of migrants with distinct configurations of characteristics. Each migrant type corresponds to a specific theoretical account, and becomes prevalent in a specific period, depending on the economic, social and political conditions. Strikingly, each migrant type also becomes prevalent around the period in which its corresponding theory is developed.
- Topic:
- Migration and Labor Issues
- Political Geography:
- United States and Mexico
14. Unauthorized Migrants in the United States
- Author:
- Jeffrey Passel
- Publication Date:
- 09-2007
- Content Type:
- Working Paper
- Institution:
- The Organisation for Economic Co-operation and Development
- Abstract:
- This report discusses methods of measuring unauthorized migration to the United States. The “residual method” involves comparing an analytic estimate of the legal foreign-born population with a survey-based measure of the total foreign-born population. The difference between the two population figures is a measure of the unauthorized migrant population in the survey; it can then be corrected for omissions to provide a measure of the total unauthorized population. The report includes a detailed description of the residual methods and the underlying data and assumptions as it has been applied to recent data from the Current Population Survey (CPS) and decennial censuses. The paper presents new results of estimates derived from the march 2006 CPS which show that the unauthorized population in the U.S. has reached 11.5 million; of these, 6.5 million or 57% are from Mexico. The report also presents derived data on a range of social and economic characteristics of the unauthorized population developed with an extension of the residual estimates. Finally, historical data on trends in unauthorized migration and several alternative estimation methods are presented and discussed.
- Topic:
- Migration, Labor Issues, Immigration, Border Control, and Socioeconomics
- Political Geography:
- United States, Central America, North America, and Mexico
15. Mexico's Auto Industry after NAFTA: A Successful Experience in Restructuring?
- Author:
- Juan Carlos Moreno Brid
- Publication Date:
- 08-1996
- Content Type:
- Working Paper
- Institution:
- Kellogg Institute for International Studies
- Abstract:
- Mexico's motor vehicle sector is viewed as a most successful case in industrial restructuring. In the mid-70s it was an industry characterized by outdated machinery and incapable of competing in the international market. Today its manufacturing plants are competing worldwide in automotive production, exporting more than a million engines and 400,000 vehicles a year. This transformation is explained by changes in Mexico's positioning within the automobile global market as well as by the policies applied by the Mexican government to regulate vehicle production, imports, and sale in the country. The North American Free Trade Agreement (NAFTA) is changing the institutional framework of the Mexican economy and radically liberalizing its highly protected domestic automotive market. In this study we examine the evolution of Mexico's automotive sector in the last fifteen years and the various factors contributing to its transformation. The first section reviews Mexico's overall economic strategy and trade policy. The second focuses on the regulation of vehicle and auto parts production in Mexico. Clearly, trade restrictions have been very important for the development of Mexico's automotive sector. The third section deals with the performance of the Mexican automotive industry up to 1993, before NAFTA was put into effect. It is followed by some comments on the changes that NAFTA is already bringing about. In the final section, we present our view on the industry's outlook.
- Topic:
- Development, Labor Issues, Economic Growth, NAFTA, and Automotive Industry
- Political Geography:
- Central America, North America, and Mexico