ECIN Replication Package for "Trade, Offshoring, and Manufacturing Employment Volatility in Mexico"

We find that manufacturing sectors specializing in the processing and assembly of foreign-owned intermediate goods had higher employment volatility in Mexico from 2007 to 2020, whereas specialization in trade had limited impacts on volatility. In general, the co-evolution of trade integration and international outsourcing complicates efforts to disentangle the distinct effects of trade versus offshoring on developing-country labor markets. We approach that problem by using official statistics that distinguish between production sharing processes typical of offshoring-intensive sectors versus traditional trade activities. The empirical strategy exploits regional and temporal variation within industries using data supplied for this project.