Gendered Labor Market Responses to Increased Import Competition

Key Messages

• Increased globalization has led to major transformations of labor markets in developed and developing countries.
• Analyses focusing on aggregate effects of increased import competition and ignoring the structure of the labor market miss important developments.
• Higher exposure to import competition affects male and female workers in Mexico differently.
• Displaced workers partly move into informal employment which attenuates negative employment effects.
• Entrance into the labor market through informal work in periods of lower labor demand can lay the foundation for the inclusion of women in the labor force.