Trade with Mexico and California Jobs


 

Publication Date: January 2006

Publisher: Public Policy Institute of California

Author(s): Howard J. Shatz

Research Area: Economics

Type: Report

Coverage: California

Abstract:

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.