What explains unemployment in US–Mexican border cities?

Mollick, André Varella

doi:10.1007/s00168-007-0125-7

Cited by 2 publications

(1 citation statement)

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“…Despite the locational advantages of border counties, these areas have been traditionally considered as economically depressed (General Accounting Office, 2000). In particular, the composition of border city employment differs from that at the national level and unemployment in border regions is not well explained by determinants of the national unemployment rate (Mollick, 2007). Economically, Texas border counties are on the periphery of the more successful metro areas known as the Texas Triangle, consisting of Dallas‐Fort Worth, Houston, and San Antonio (Gilmer and Cañas, 2005).…”

Section: Literature Reviewmentioning

confidence: 99%

The Effects of U.S.‐CHINA Trade on Employment and Wages in the U.S.‐MEXICO Border Region

Alyson¹,

Wooster²

2009

Contemporary Economic Policy

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"This article investigates the impact of foreign competition from China on employment and wages in four U.S.-Mexico Border counties: Santa Cruz, Arizona; San Diego, California; El Paso, Texas; and Webb, Texas. Using disaggregated industry-level data between 1992 and 2006, we find that increased trade with China is associated with significantly lower county-industry employment and wages. In contrast, and as expected, increased imports from Mexico are positively related to increased employment and wages in U.S.-Mexico border counties. The results indicate that the U.S.-Mexico supply-chain relationship related to the maquiladora industry is significantly affected by Chinese competition. Implications for policy include an increased focus on federal programs that are intended to diversify the border economy". ("JEL "F13, F43, F23) Copyright (c) 2009 Western Economic Association International.

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Section: Literature Reviewmentioning

confidence: 99%