Import Competition and Gender Differences in Labor Market Responses in Mexico

Abstract: This paper examines the impact of increased Chinese imports in Mexican commuting zones over the period 1990-2010. We use a Bartik instrument and exploit initial differences in industry gender composition, allowing us to generate variation in local import exposure. The results show that Chinese imports in female-intensive manufacturing industries have a significant negative impact on local female manufacturing employment. On the other hand, we find no effect of imports in male-intensive industries on male manufacturing employment. Moreover, we find that low-educated workers are impacted the most by the import shock.