The demand for employment in the manufacturing industry in Mexico

Abstract

The purpose of the document is to analyze the demand for employment in the manufacturing industry in Mexico, during the period from 2007 to 2015, considering 19 subsectors of the manufacturing industry. The effect that economic performance variables have as the gross domestic product, as well as wages, is analyzed. Labor productivity and manufacturing exports are also considered as explanatory variables. With information from the INEGI Monthly Industrial Survey, different models with panel data are estimated and the most suitable one is selected based on specification tests. It is found that the demand-product elasticity is the most relevant of all. The demand elasticity - wages is negative, and it is only significant to explain the demand for specialized work. Labor productivity and exports are significant and have a negative and positive effect, respectively, on the demand for total, specialized and non-specialized work.