International Programs

This paper addresses how Mexican worker welfare has changed since the beginning of the North American Free Trade Agreement (NAFTA). To examine the changes in Mexican worker welfare, this thesis analyzes the effects of the organization created by the labor side agreement to NAFTA, the Commission for Labor Cooperation (CLC), presents the changes in employment, calculates labor productivity indexes and describes the changes in earnings for Mexican workers. The changes in the employment, productivity and earnings in the manufacturing industry are portrayed as a definitive example of the changes in worker welfare because this industry employs the most workers that produce goods for trade. The evidence provided in this paper finds that Mexican worker welfare has changed since the advent of NAFTA. Specifically, it appears there has been an overall increase in worker welfare. By commenting on the attributes of the CLC and by comparing pre-NAFTA and post-NAFTA changes in employment, productivity and earnings, this report uncovers the positive and negative results for Mexican workers overall. For the manufacturing sector, employment levels have increased and labor productivity has improved but recent negative employment trends and pessimistic earnings and benefits evidence may suggest a reduction in the welfare of Mexican workers in manufacturing.