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Trade with Mexico and California Jobs

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Publication Date: January 2006

Publisher(s): Public Policy Institute of California

Author(s): Howard J. Shatz

Funder(s): Public Policy Institute of California

Funder(s): Public Policy Institute of California

Series: California Economic Policy v.2 no.1

Topic: Economics (Economic policy, planning, and development)

Type: Report

Coverage: California


The increasing globalization of the U.S. economy has sparked a persistent debate over the effects of trade on labor markets, and this debate has been most heated when it involves trade between the United States and low-wage countries. This edition of California Economic Policy analyzes the effect of trade with Mexico on job loss in California. The author finds that in some sectors of the economy --- particularly manufacturing --- trade with Mexico has had a small but visible effect, but not the large-scale level of job destruction some had feared.