Abstract:This study examines the variation in the number of strikes, and days lost to strikes, in the Mexican automobile industry. The analysis draws on an original data set on strikes in 11 Mexican finished vehicle plants for the period of 1980 and 2012. The statistical models are estimated using pooled Poisson and negative binomial regression. The findings of the study provide empirical support for perspectives that emphasize the legacies of state corporatism, and theories that focus on the effects of regional integr… Show more
“…Second, the CTM has committed to strike‐free labor relations. Between 1994 and 2012, the vast majority of CTM affiliates have had no strikes or days lost to strikes (most strikes and days lost occurred in plants organized by independent, democratic unions; Tuman, ).…”
Section: Theoretical Approach and Review Of The Literaturementioning
This study examines the subnational flow in foreign direct investment (FDI) to Mexican states, with a focus on the finished vehicle industry. Although prior studies have examined subnational FDI in Mexico, research on the automobile sector has been scant. Utilizing a framework associated with the theory of asset specificity, we examine the influence of human capital and labor conditions, infrastructure, subnational policies, and security. The study employs a data set on finished vehicle FDI across 31 states and the Federal district for the period of 2004–2014. We adopt a two‐part model. The first part, which includes all states and the Federal district, is estimated with pooled logistic and Firth logistic regressions. In the second part, we examine variation in levels of FDI among states selected for investment with pooled ordinary least squares with panel‐corrected and Driscoll Kraay standard errors. Labor conditions are significant for both state selection and levels of FDI, but education is influential only in the selection stage. In addition, states with trunk rail lines linked to the U.S. border are more likely to be selected and receive higher FDI. After controlling for these influences, murder and homicide rates, and state development have no significant effects.
“…Second, the CTM has committed to strike‐free labor relations. Between 1994 and 2012, the vast majority of CTM affiliates have had no strikes or days lost to strikes (most strikes and days lost occurred in plants organized by independent, democratic unions; Tuman, ).…”
Section: Theoretical Approach and Review Of The Literaturementioning
This study examines the subnational flow in foreign direct investment (FDI) to Mexican states, with a focus on the finished vehicle industry. Although prior studies have examined subnational FDI in Mexico, research on the automobile sector has been scant. Utilizing a framework associated with the theory of asset specificity, we examine the influence of human capital and labor conditions, infrastructure, subnational policies, and security. The study employs a data set on finished vehicle FDI across 31 states and the Federal district for the period of 2004–2014. We adopt a two‐part model. The first part, which includes all states and the Federal district, is estimated with pooled logistic and Firth logistic regressions. In the second part, we examine variation in levels of FDI among states selected for investment with pooled ordinary least squares with panel‐corrected and Driscoll Kraay standard errors. Labor conditions are significant for both state selection and levels of FDI, but education is influential only in the selection stage. In addition, states with trunk rail lines linked to the U.S. border are more likely to be selected and receive higher FDI. After controlling for these influences, murder and homicide rates, and state development have no significant effects.
“…Further, they show that it is a superior predictor of industrial action as compared to union density. Similarly, Tuman's (2019) study on the drivers of strike activity in the automobile industry of Mexico between 1980 and 2012 shows that the institutional characteristics of unions, such as democracy within them and corporate affiliation/independence, do matter. More specifically the results show that union democracy and independence increase industrial action.…”
Section: Trends and Drivers Of Strike Activitymentioning
confidence: 99%
“…Simultaneously many governments facilitate this process since they implement reforms on liberalising national employment relations systems and reducing wages in the hope of attracting foreign investment (Scheuer, 2006). Econometric evidence suggests that indeed globalisation and trade openness have contributed to the decline of industrial action over the last decades in a diverse array of economies (Brandl & Traxler, 2010; Piazza, 2005; Tuman, 2019). Still, it is important to note that the effects can vary across countries and sectors with different structural characteristics.…”
Section: Trends and Drivers Of Strike Activitymentioning
confidence: 99%
“…The literature on the determinants of strike action presents several competing and complementary explanations regarding the driving forces behind this stylised fact. These range from the effects of inflation and the decline of the associational power of workers to deindustrialisation and the disciplining effects of outsourcing (Ashenfelter & Johnson, 1969; Brandl & Traxler, 2010; Goerke & Madsen, 2004; Kaufman, 1982; Piazza, 2005; Scheuer, 2006; Tracy, 1986; Tuman, 2019).…”
While isolated episodes of work stoppages keep occurring, aggregate industrial action rates have been on the decline over the last five decades. Attempts to explain this trend centre on the short‐term effects of the business cycle and the long‐term impacts of labour market liberalisation, deindustrialisation and globalisation. This paper argues that household indebtedness is a missing piece of the puzzle. Since indebted employees tend to become self‐disciplined at the workplace on the fear of losing their job and defaulting, this paper argues that the post‐1970 rise of household financialisation is associated with the decline of strike activity. The econometric evidence reported provides strong support to this argument for the cases of Japan, Korea, Sweden, the United States and the United Kingdom over the period 1970–2018.
“…83–85). Despite the existence of some independent and democratic unions in Mexico, the majority of unions remain affiliated with the Confederación de Trabajadores de México (CTM), the largest labor confederation, with a heritage of state corporatism and little internal democracy (Bensusán, 2016; Tuman, 2019). In some sectors, including the automobile industry, firms gravitate to the CTM because it has preempted democratic unions, offered companies weak contracts, and promoted strike‐free labor relations in exchange for recognition (see Tuman & Erlingsson, 2019).…”
Section: Theoretical Approach and Review Of The Literaturementioning
Despite the growth of scholarship on Chinese outward foreign direct investment, we still know little about the determinants of it at the subnational level within developing countries. This article seeks to fill that gap in the literature through a study of Chinese investment across 31 Mexican states and Mexico City (formerly the Federal District). Focusing on the period of 2004 to 2014, the analysis employs a two‐part estimation method to understand why Chinese firms select some Mexican states for investment, and what drives the level of investment among states selected. The first part is estimated with pooled logistic and Firth logistic regression with adjustments for serial correlation. The second stage equations are estimated with pooled OLS with panel‐corrected and Driscoll‐Kray standard errors, and adjustments for serial correlation. We find that market size, education, and partisan control in state government exhibit an influence on both the selection stage and the level of foreign direct investment. The presence of deep‐water ports in a state is also important in the selection stage. After controlling for these influences, the models suggest that mining resources, homicides, unionization, state taxes, and other factors have no significant effect in either stage.
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