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The Impact of NAFTA on US Local Labor Market Employment

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

I study the impact of the North American Free Trade Agreement on US local employment based on regional variation in exposure to US and Mexico's tariff liberalization. Lower US tariffs led to a relative decline in the share of the working-age population employed in manufacturing (especially among low-skilled workers) in more exposed regions and increases in unemployment and in the share of the population employed in certain low-pay nonmanufacturing industries. Employment losses due to US tariff liberalization were much larger among female and nonwhite workers. Mexico's tariff cuts, in contrast, increased manufacturing employment among individuals with college education.

Original languageEnglish
Pages (from-to)41-83
Number of pages43
JournalJournal of Human Resources
Volume61
Issue number1
DOIs
StatePublished - Jan 1 2026

Bibliographical note

Publisher Copyright:
© 2026 by the Board of Regents of the University of Wisconsin System

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

ASJC Scopus subject areas

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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