We analyze the labor market consequences of international trade, using the evidence provided by the behavior of Mexican labor markets after the introduction of NAFTA in the nineties and the accession of China to the WTO in 2001. Following an approach close to that proposed by Autor, Dorn and Hanson (2013), we use the local market variation on exposure to international markets to identify the effects of these events. We show that NAFTA integration reduced unemployment, and boosted employment and wages. Chinese competition tended to have the opposite effect. Additionally, we find that the labor market responses to international trade are heterogeneous across regions in the country, being significantly stronger in the regions closer to the U.S. border.

The main contribution of this paper is to place smooth infinite economies in the setting of the equilibrium manifold and the natural projection mapà la Balasko. We show that smooth infinite economies have an equilibrium set that has the structure of a Banach manifold and that the natural projection map is smooth. We define regular and critical economies, and regular and critical prices, and we show that the set of regular economies coincides with the set of economies whose excess demand function has only regular prices. Generic determinacy of equilibria follows as a by-product. Keywords: General equilibrium, infinite economies, intertemporal choice, uncertainty. JEL Classification: D5, D50, D51, D80, D90.Resumen La principal contribución de este trabajo es ubicar a las economías infinitas suaves en el marco de la variedad de equilibrio y la proyección naturalà la Balasko. Demostramos que las economías infinitas suaves tienen un conjunto de equilibrio que tiene la estructura de una variedad diferencial de Banach y que la proyección natural es suave. Definimos economías regulares y críticas, y precios regulares y críticos, y demostramos que el conjunto de economías regulares coincide con el conjunto de economías cuya función de exceso de demanda sólo contiene precios regulares. Determinación genérica de equilibrios se obtiene como corolario. Palabras Clave: Equilibrio general, economías infinitas, elección intertemporal, incertidumbre.

Lower profit rates play an importan role in the evolution of an ownership private economy. We argue that if managers look to maximize profits rates, then the decision to change, to those branches, or technologies, that offer higher rates of profits, plays an important role in the characterization of economies. If managers choose to produce according to those technologies that promise higher profit rates, then along the time, the distribution of the firms over the set of available technologies change, and therefore the economic fundamentals change. Under conditions of imperfect information, the imitation of the most successful firms plays can a decisive role in deciding how to produce. Along a path of Walrasian equilibria, regular economies can become singular and if this occurs, big changes must be expected after decisions of the firms for the next period.

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