European Regional Science Association
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European Regional Science Association
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The abstract for paper number 51:
Alejandro Diaz-Bautista, Professor of Economics and Researcher at the Department of Economic Studies, COLEF, Chula Vista, USA
A Comparison between Regional Labour Markets in Mexico and other OECD Countries
During the past decade, Mexico has successfully implemented a program of economic reforms and free trade towards a complete restructuring of its economy. Surprisingly, it seems that the reform process has occurred with little impact on regional labour markets. An analysis of trends indicates that, even in the worst years of economic crisis, Mexico's average unemployment rates did not increase beyond 7%. Tijuana’s unemployment rate in 2001 was on average 0.72%, while the economy was experiencing the start of a recession, and mayor structural reforms were expected. These figures seem very low when compared to those for other OECD countries. In the paper, one of the goals is to evaluate transitory demand and permanent supply shocks in Tijuana Mexico’s unemployment time series, as given by that identification restriction and the structural break unit root methodology. Okun’s law is also tested for the Tijuana and Mexico City unemployment series. Finally, a comparison is made with other OECD labour markets.
Unfortunately full paper has not been submitted.