Paper prepared for presentation at the Latin American Studies Association Meetings, March 2003

Work, Wages, and Gender in Export-Oriented Cities:

A Comparison of Ciudad Juarez and Cancun, Mexico."

Christopher R. Tamborini and Patricia A. Wilson1 University of Texas at Austin

August 2002 The movement toward export-led development strategies in Latin America has affected the occupational, gender, and earnings composition of urban labor markets. This article addresses the question of how dissimilar export-led strategies affect urban labor markets, particularly with respect to women workers in the formal sector. The article compares Ciudad Juárez Juárez, whose economy is based on global assembly production, and Cancún, whose economy is based on international tourism. Employing economic base theory and location quotients, the analysis isolates the impact of the export sectors on the local labor markets. The study draws on a rich source of labor market data for urban areas in Mexico disaggregated by industrial sector, occupation, earnings, and gender: the Mexican National Urban Employment Survey of 1998. The results show that women workers in international tourism are found primarily in occupations that at a national urban level are characterized by lower than average earnings; however, in the export context, the occupations are characterized by higher than average earnings. In fact, average female earnings in the export occupations in Cancún are only slightly below those in Ciudad Juarez. Female earnings in both assembly industry and international tourism are higher than national urban averages for women. Differences between female and male earnings are slightly less in Ciudad Juarez than Cancún, and both places experience a smaller disparity than at the national urban level. We conclude by arguing that the local labor market implications emerging from export-led industrialization are not uniform, and will first depend on the strategic type and mode of the export industries that local communities adopt. 1 Chris Tamborini is a doctoral student in sociology at the University of Texas, where he is a Mellon Fellow in Latin American Sociology. Patricia Wilson is Professor of Community and Regional Planning at the University of Texas, where she directs the Joint Program in Planning and Latin American Studies.

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INTRODUCTION Export led industrialization is a strategic component of current economic globalization processes in Latin America. The identification of the diversity of socioeconomic outcomes between and within export-oriented urban labor markets is fundamental to understanding the transformation of urban centers in Latin America undergoing neoliberal based development policies of export promotion. This paper examines the labor market implications of two leading export-based development strategies by comparing the labor force of an urban center of global assembly production (Ciudad Juarez, Mexico) and an urban center of international tourism (Cancún, Mexico). Given the predominance of export-oriented industries in each city, both cases present an appropriate setting to analyze the labor market implications of two leading, but very different, outward-oriented development strategies. In this vein, this article considers a new line of analysis that allows us to evaluate the extent to which dissimilar export-oriented industries affect the nature of local labor markets.

Governments presently pursue a wide variety of neoliberal strategies of export promotion in hopes of increasing foreign revenue and capital, creating spin-off development, and generating local employment. There is a dynamic discussion in the literature over the extent to which neoliberalism and the strategic movement toward export promotion has fostered changes in the labor market composition of urban centers in Latin America (Itzigsohn 1997; Oliveira and Roberts 1996; Sassen 2000; Tardanico and Larin 1997,1997a).2 An important theme in this area of research has called attention to the impact of neoliberal development policies and global restructuring on women’s involvement in the labor force (Bose and Acosta-Belen 1995; Cravey 1998; Oliveira 1997; Ward 1990). While there is widespread agreement that the reorientation of national development regimes in Latin America from import substitution to neoliberal strategies of export promotion represents one key component to understanding current labor regimes, there is a dearth of comparative information about the relative labor market implications that different export industries encourage. Identifying the distinctions between and within different export-based labor market segments across the developing world is important, as employment in such industries is heterogeneous in terms of wage, skill-base, worker autonomy and flexibility for example. Understanding the labor market implications of leading export strategies, especially for women, is a substantive and timely topic to examine as it broaches a broad arena of perspectives on development, the labor market and gender equity. At the same time, determining the labor market outcomes of export strategies is important to economic and social policy and hence is of consequence to policy-makers and governments in Latin America and in developing countries throughout the world.

In order to systematically investigate the labor market implications of different leading export strategies, we draw from two distinct urban case studies in Mexico. Mexico ranks as one of the foremost Latin American economies that use export-oriented development strategies (Tardanico 1997:27). In this context, two cases were purposely chosen so as to reflect urban centers that grew up around different types of leading

2 For example, authors have been concerned over the evolution of state employment, poverty rates, unemployment levels and/or occupational characteristics of urban centers within the neo-liberal phase of development.

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export-oriented development strategies (a) Ciudad Juarez, urban hub of global assembly production; (b) Cancun, urban hub of international tourism. Such a difference in their dominant export-oriented economic base, we hypothesize, will differentiate the industrial and occupational composition of each city, and affect the way gender is articulated in the labor force. Drawing from the Mexican National Urban Employment Survey (Encuesta Nacional de Empleo Urbano) 1998, the following questions guide our analysis. First, to what extent is the labor force in Ciudad Juarez different from the labor force of Cancún? How do their labor markets differ from the overall average of urban Mexico? It should follow that different patterns of employment in each city emerge from their distinct link with the global economy. Second, we focus on the labor market implications of each export-based strategy for women. This is an important component of this study given that theoretical perspectives often imply that export industries in the developing world are more open to female labor. Many studies have suggested that the ‘preferred’ work force for the maquiladora industry has been often young women (Cravey 1998; Sklair 1989; Tiano 1990).3 Likewise, research has found that tourism employment tends to encourage female labor participation (Apostolopoulos, Sönmez and Timothy 2001, Chant 1991,1997, Ireland 1993). If indeed some of the increasing female labor emerging in the current period can be classified as employment generated through increasing global integration and export specialization, then how do different export sectors encourage distinct forms of female employment and labor market segmentation? To answer this broad question we analyze the composition of the labor force in each case city by gender. Is the industrial and occupational concentration of the female labor force in Ciudad Juarez and Cancún different? Given prior literature, we expect the female labor force to be concentrated in industries and occupations related to the predominant export sector of each city, but have no prejudgment as to the prevalent occupational categories that women occupy therein. Finally and continuing with a focus on female labor, we investigate the income composition in each city. Here, we focus on two main questions. To what extent are the income opportunities and level of income inequality different in each case city? Are the earnings of female workers in key occupations related to the predominant export industry of each city different? Theoretical perspectives suggest that both global assembly production of manufactures (Cravey 1998, Ward 1990) and international tourism (Levy and Lerch 1991; Casellas and Holcomb 2001) tend to render low wage employment opportunities, especially for women. We test this proposition in the context our case cities, examining the income structure and inequality within the labor markets of each case city and with respect to the national industrial labor force. To gain a better understanding of the earning potential of jobs directly related to internationalized sectors, we then compare the income composition of the key occupations directly associated with each city’s export industry.

3 However, male employment in maquilas has been increasing since 1983. (Fernández-Kelly 1993).

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Answering the questions of this study is key to understanding how an urban center’s predominant export base industry affects its developmental prospects.4 Since

the urban centers in this study contain a concentration of export-oriented industries that are increasingly promoted by many developing nations to spur economic growth and development, this study is timely and its results provide useful information for countries and communities currently pursuing variants of such approaches. However, the questions we address are broader than the evident concerns over employment and occupational patterns. The consideration of work and employment in Ciudad Juarez and Cancun brings up much broader concerns about the changing and often uneven patterns of development across urban centers of the developing world, which has been a theme of much relevance to scholars of Latin America (Roberts 1995; Tardanico and Larin 1997; Tardanico and Lungo 1995). The rest of this paper is organized in the following manner. First, we further sketch out the theoretical and empirical concerns guiding this study. This is followed by a discussion of our data source and research approach. Next, a description of the findings, which identifies different patterns of employment and income opportunities between each city, is presented. From these results, we derive implications and conclusions. To better understand the specific nature of the labor markets in two export- oriented Mexican cities, it is first necessary to sketch out the evolution of export-led development by placing it within the wider developmental context of Latin America. A BRIEF HISTORY OF THE DEVELOPMENT OF EXPORT PROMOTION Latin American economies from the colonial era to the mid-1900’s were driven by raw material exports (mining and agricultural commodities). For instance, at the beginning of the 1930s, cities such as Buenos Aires, Sao Paulo and Medellín concentrated in export activities that serviced the internationalized agricultural sector such as in coffee, cereals and meat (Oliveira and Roberts 1996). With the rise of the import substitution period (ISI) however, development strategy shifted and reflected a national commitment toward internal market expansion and urban industrial growth. In this period, export-oriented production was marked as a secondary development strategy, often implemented to pay for urban industrial growth or to spur development in regions that were very poor and isolated from the urban areas. Faced with large international debts, a lack of foreign exchange, and persistent poverty in the early 1980s, the ISI model gave way to neoliberal-based development policy. In this developmental context, export promotion once again became a primary development strategy throughout much of Latin America, but this time oriented towards non-traditional exports, such as manufactured goods and perishable produce. In their search for a role in the new global economy, both nations and local communities draw upon their comparative advantages, such as cheap labor or natural amenities, to bring in

4 According to economic base theory, export activity (defined as those goods and services sold outside the local economy) drives the local economy through the local income and employment multiplier. The size of the multiplier depends on the amount of local inputs that are used, and the amount of wages and salaries that are spent locally. The assembly industry is known for having a small local multiplier because of the reliance on a high degree of imported inputs (Wilson 1992).

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outside dollars. The result has called particular attention to the role of, and the repercussions on, the female labor force. WOMEN AND EXPORT DEVELOPMENT “The various global circuits that incorporate growing numbers of women have strengthened at the same time as economic globalization has had significant impact on developing economies” (Sassen 2000: 504).

One important aim of this study is to determine the impact of distinct export-oriented development strategies on the female labor force. Numerous studies suggest that in contrast to import substitution industrialization, export-oriented development encourages the use of female labor through various mechanisms such as the creation of export processing zones in greenfield sites (i.e. locations with no prior industrial activity), the weakening of labor unions, and the deregulation of labor (Beneria 1999; Cravey 1998; Safa 1995; Tiano 1990, 1994; Ward K. 1990, World Development 1995). Particular attention has been given to the participation and conditions of female workers in key export sectors such as in maquiladoras (Cravey 1998; Tiano 1990, 1994; Ward 1990) and non-traditional fruit and vegetable exports (Barrientos 1997; Bee and Vogel 1997). Women’s expanding involvement in the labor force, it is argued, follows in part from a new labor demand created by the increasing presence of foreign-owned export producers seeking to lower labor costs in a highly competitive global market. Women workers are found to be less unionized, more agile, and less expensive than male workers (Cravey 1998; Gilbert 1994; Safa 1995; Sklair 1989; Ward K. 1990). While substantive and insightful, research on the intersection of the world economy and female labor has not explicitly recognized the distinctions between women working in dissimilar export industries. Women increasingly work in a diverse range of export sectors, such as manufacturing, non-traditional agriculture, international tourism, and producer services. In this diversity, it remains unclear from a comparative viewpoint the extent to which dissimilar export industries encourage differential employment and income opportunities for women.5 In this context, this paper examines the labor market implications of two leading export-oriented strategies, global assembly and international tourism. GLOBAL ASSEMBLY PRODUCTION AND EXPORT PROMOTION For many national and local government leaders of the developing world, global assembly production (known in Mexico as the maquiladora industry) reflects a leading export-oriented development strategy. Global assembly typically involves the more labor intensive or routine phases of production for goods intended for the world market and has encompassed the production of a wide variety of goods, beginning with textiles and

5 Moreover, research shows a diversity of employment and income opportunities can exist within the same export oriented sector. For example, Tiano (1990), points out the disparity in working conditions and employment security within the maquiladora sector; noting that “electronic maquilas tend to be large, modern operations that use up-to-date machinery . . . apparel maquilas are more diverse, ranging from clean, modern facilities to poorly ventilated, dingy ‘sweatshops’ ” (197).

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garments, consumer electrics, and more recently electronics and automobile subassemblies.

The emergence of global assembly as a development strategy reflected a confluence of international factors. In advanced countries, it was marked by the decline of U.S. corporate hegemony in the world economy and an increase in foreign competition, especially from Germany and Japan. Foreign competition stimulated a drive to reduce production costs, which encouraged a shift in corporate strategies of production. This development eventually led to the decentralization of the production process and is characterized by the movement of labor-intensive production activities to the developing world with the ultimate goal of reducing production costs (Alarcón and McKinley 1992, Wilson 1992). In Latin America, the rise of global assembly, such as in Mexico, Brazil, and many Caribbean countries, emerged out of the fall of the import substitution model of development and the corresponding national reorientation toward export-led industrialization. Facing international debt, lack of foreign exchange, and rampant unemployment in the 1980s, many Latin American countries (especially --Mexico, Dominican Republic, Brazil, [more recently Costa Rica]) adopted global assembly as a development strategy in hopes of generating foreign currency, spin-off development, and local employment. While a considerable number of production sites are still marked by labor-intensive and low technology operations such as in the production of textiles and garments, the maquiladora industry is no longer solely a site for low productivity and labor-intensive activities (Shaiken 1994; Wilson 1992). The maquiladora program in Mexico, for example, is increasingly drawing factory-work that uses more sophisticated forms of technology and production, such as automobile manufactures and advanced electronics assembly activity (Fernández-Kelly 1993). Wilson (1992), in her study on maquiladoras in Mexico, found that “worker productivity has increased, the production process is more capital intensive; and many maquiladoras now do actual manufacturing” (42). CIUDAD JUÁREZ AS HUB OF GLOBAL ASSEMBLY Since the mid-1970s, Mexico’s economic development strategy shifted from an import substitution model to a neoliberal strategy of export promotion. Mexico’s maquiladora program, perhaps the most extensive in Latin America, is a key component to their national development strategy, and has been one of the fastest growing export sectors in Mexico, becoming the largest source of foreign exchange in the 1990s (Cravey 1998). Ciudad Juarez is a city that has come to specialize in the export-oriented production of manufactures. Sharing the US-Mexican border with El Paso, Texas, Ciudad Juárez has had a number of comparative advantages that encouraged the explosive growth of export-oriented manufacturing beginning in the 1960s; it had an abundant supply of cheap labor; it was within very close proximity to US markets; and it had a favorable infrastructure in place. At the same time, structural polices such as the 1965 Mexican Border Industrialization Program; GATT, the General Agreement on Tariffs and Trade in 1986 and NAFTA, the North American Free Trade Agreement in

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1994; has helped stimulate export-production of manufactures. Through these programs, foreign investment was encouraged through friendly government subsides and the deregulation of imports (see Cravey 1998 for more detail).

Ciudad Juarez’s population has increased steadily over the past three decades, making it the seventh largest urban center in Mexico with a population of 798,499 in 1990 (INEGI).6 The connection between migration and employment in the maquiladoras has been well documented. Numerous studies have linked migration to urban centers of Northern Mexico with an increased demand for labor, especially women. Fernández-Kelly (1983), in a study of maquiladoras and migration, estimated that 70 percent of maquila workers were migrants, with a median length of time in the city of 14 years. Young and Fort (1994) with a sample of 709 women migrant respondents working in Ciudad Juárez found that maquiladora workers were more likely than women working in other sectors (mainly commerce and services) to have migrated to the city. (See also Nash and Fernández-Kelly 1983; Portes and Walton 1981; Sassen 1988). INTERNATIONAL TOURISM AND EXPORT PROMOTION For many national and local governments, international tourism, similar to global assembly, reflects a leading export-oriented development strategy. Some cities and in some cases entire nations (e.g. Mexico, Costa Rica, Dominica Republic) have made the development of international tourism a major priority. In many Latin American countries, international tourism has increased dramatically in the past 30 years, becoming an important sector to some cities, regions and national economies (Casellas and Holcomb 2001). Tourism can play an important role in local and national development capacity of LDCs, and involves a multitude of social actors such as multinational corporations, the state, entrepreneurs, workers, and local populations (Lea 1988; Long 1991). Tourism development has often been promoted as a panacea for the socioeconomic problems of the developing world; a means to improve living standards, generate employment, slow out-migration from the countryside, diversify natural resource-based economies, and capitalize on ‘natural wealth’ (Freitag 1996; Krippendorf 1987; Nash and Smith 1991). Tourism development is advocated by influential multilateral organizations such as The United Nations, The World Bank, The International Monetary Fund and US-AID. Although there is limited social science literature on the labor market implications of international tourism, especially in Latin America, a number of analyses represent a good starting point for this article. Foremost, it is often argued that tourism encourages economic opportunity for women, especially in developing nations (Apostolopoulos, Sönmez and Timothy 2001, Chant 1991,1997, Ireland 1993, Swain 1993). Chant (1991), which investigates women’s employment patterns in three Mexican cities with different economic bases, finds that women’s labor force participation is higher in a town (Puerto Vallerta) dominated by tourist services. Higher rates of women labor participation, she

6 According to Conteo de Poblacion y Vivienda, 1995, INEGI, the population of Ciudad Juarez in 1995 is estimated at 1,011,786.

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argues, is largely due to the number of gendered jobs in the tourism sector associated with ‘reproductive tasks’ such as bed making, laundry work and hospitality. At the same time, female work in tourism is often associated with seasonal, part-time, informal or low paid positions (Jordan 1997). In a study on gender and tourism employment in Barbados, Levy and Lerch (1991) found that tourism jobs were segregated by gender. When compared to men, women in the tourism sector tend to have“… jobs that offer less job security, pay, or stability” (82).7 Casellas and Holcomb (2001) estimates that for “every Peruvian woman who is employed in better-paid [tourism oriented] jobs such as a flight attendant or accountant at a five-star hotel, there are undoubtedly a hundred who knit and sell alpaca hats or launder tourists clothes by hand in the back courtyards of their Cuzco homes (158).” CANCÚN AS HUB OF INTERNATIONAL TOURISM Focused efforts to develop a strong tourism sector by the Mexican government have helped stimulate extensive national tourism growth during the past 30 years. Currently, Mexico hosts the largest tourism industry in Latin America, ranking seventh in 1996 out of the top twenty global destinations for international arrivals (Casellas and Holcomb 2001; WTO 2001). Tourism is the largest export service sector in Mexico, consistently ranks second or third in overall exports, and makes up a substantive portion of Mexico’s gross domestic product (Clancy 2001). Located in the state of Quintana Roo, Cancún is a city that literally grew up around the development of international tourism. In the early 1970s, Cancún was one out of five regions that were strategically chosen for touristic development during the beginning period of Mexico’s ‘tourism export push’ (Clancy 2001, Maldonado 2000).8 Based on location criteria that favored large-scale projects to be placed in some of the least populated and poorest regions of Mexico, tourism development at this time focused on the creation of the ‘resort town’. Tourism development, it was argued, would provide much needed local employment and generate foreign revenue, which would help Mexico contend with their rising debt. As such, Cancún has enjoyed favorable governmental economic policies that promoted national and international investment in the tourism industry. Today, Cancún has grown to be perhaps the premier international tourism destination in Mexico. Tourism in Cancun is large-scale, oriented toward the international market, and focused on beaches, surf, and sun. By 1989 Cancún became the single most visited place in Mexico (Clancy 2001). In 2000, Cancun received an estimated 3 million tourists; 2.3 million of those were foreign (INEGIa). Cancun’s population has increased steadily over the past three decades, making it the thirty-ninth largest urban center in Mexico in 1990 with a population of 176,765 (INEGI).9 Similar to Ciudad Juárez, the development of the predominant export-oriented sector in Cancún, in this case tourism attracted many labor migrants. Re Cruz (1996) 7 While Levy and Lerch (1991) found hat tourism employment provided more limited opportunities for women, they noted that women often see tourism work as less taxing than their more traditional agriculture jobs. 8 For a more detailed historical account of Cancún see Maldonado (2000). For a journalistic perspective on the development of Cancún see Marti (1985). 9 According to Conteo de Poblacion y Vivienda, 1995, INEGI, the population of Cancun in 1995 is estimated at 311,696.

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shows how poor environmental factors and the increasing necessity for cash pushed Maya migrants toward Cancún, where the nascent tourist industry in the 1970s created a demand for cheap labor.

Given these trends, one can begin to understand the complex and dynamic relationship between export-oriented development policy and the labor market. What remains unclear is the extent to which these leading export-development strategies encourage heterogeneous labor markets between urban centers that employ such approaches. DATA AND RESEARCH DESIGN This paper examines the labor market at the city level within the Ciudad Juarez and Cancún urban regions. The data are drawn from the fourth quarter of the 1998 Mexican National Urban Employment Survey (Encuesta Nacional de Empleo Urbano—ENEU hereafter), which is implemented by INEGI (El Instituto Nacional De Estadística, Geografía E Informática). These data provide a rich and unique body of information about the occupation characteristics of 44 of the most important urban areas of Mexico. Since 1987, the ENEU (formally the ECSO) has systematically gathered information about the occupational characteristics of the Mexican urban population. The ENEU conducts extensive quarterly household interviews in 44 urban areas in Mexico, which represents roughly 62 percent of the urban population. Interviews cover such areas as participation in the labor market, type of job, and wages; variables conventionally found in such employment surveys. The sample is meant to be representative of the geographic and socioeconomic characteristics of Mexico’s urban population.10 The sample design, data collection and entry are thorough. Surveys and methodological techniques are available upon request. Given these characteristics, the ENEU is a particularly robust data source for comparing the labor market implications of two export-oriented urban centers that reflect ‘ideal types’ of leading export strategies. Data Analysis: The fourth quarter (Oct., Nov., and Dec.) was of particular interest to this study because it allowed us to measure the labor market composition of Cancún during the ‘high tourist season’. Given the methodological design of ENEU, we were unable to combine quarters in order to better control for seasonal fluctuations in employment, most often found within the tourism industry.11 While tourist employment in Cancun certainly varies with the ebbs and flows of tourists, Canun’s tourist economy is relativlely level throughout the year. Given its ‘year-round’ appeal as a tourist epicenter, we would not expect the labor market to change drastically over certain points of the year.

In our analysis, we first contrast the industrial profiles of each city’s labor force and compare them to the national urban profile, using location quotients to identify the export sectors of each city. We then conduct a gender analysis of each city’s labor force 10 It is a random sample of households within each of the 44 specifed urban areas of ENEU. For more detailed technical information see Documento Metodológico De La Enuesta Nacional De Empleo Urbano, in an easily downloadable format at http://www.inegi.gob.mx/ 11 We were unable to combine data from the 2nd and 3rd quarter of 1998 because ENEU uses a rotating panel design to measure household change over-time. In other words, quarterly surveys conducted in the same year have many of the same respondents in each survey.

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by industrial category, focusing our examination on how employed women are distributed across the labor market. This is followed by an examination of the occupational structure of each city by gender, using the monthly median national urban income of each occupation to rank them. We again use location quotients to distinguish the occupations associated with export activity.

Lastly, we focus on the income differentiating potential of each export-based strategy. Here, we identify the central tendency of income in each city’s labor market and compile a decile ratio of the income of individuals in the labor market to compare the level of income inequality in the labor market of each city. We then isolate the income data of the key occupational categories directly related to the leading export industry in each city. To be concise, we limit our analysis of income to the five occupational categories that reflect some of the sharpest differences in terms of levels of female employment concentration between case cities.

Because this study focuses mainly on formal employment, we do not provide a picture of the informal economy in each city. This is a limitation, especially given the high and what seems to be increasing rates of female involvement in the informal economy in Latin America. Another noteworthy issue in this study is the proximity of Ciudad Juarez to the U.S. border. Whereas Cancun lies in a rather isolated poor region on the Yucatan peninsula, Ciudad Juarez’s history, culture and economy is in many ways entwined with that of El Paso, Texas. Despite this confounding issues, Ciudad Juarez is certainly comparable with Cancun, as both cities are embedded within similar socioeconomic and political structures and face many of the same development challenges that exist across Mexico. Lastly, we note the different population sizes of our case studies. While size could play a role in influencing labor market opportunities, it does not explain the unique labor market compositions of both Juarez and Cancun. Below we present our findings with respect to the three particular issues we have examined: (i) the industrial profile of each city to determine the extent to which the labor force in Ciudad Juarez is different from the labor force in Cancún; (ii) the industrial and occupational concentration of female labor in each city; and (iii) some important aspects related to the income composition of each case city, including the income inequality within the labor market of each city and the central tendency of income levels of women working within the main export-oriented occupations in each city. RESULTS

[TABLE 1 here] The Industrial Profile and Exports. In order to identify the primary export sectors in Ciudad Juarez and Cancún, we compared the industrial profile of each city using location quotients. A location quotient is a measure that allows us to identify the export sectors in each city. In short, export sectors will reflect those industrial categories of a given city that employ a substantially higher proportion of its workers than does the national urban average of Mexico. It is the grouping of export-based industries that

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reflect a city’s specialization in certain outward-oriented activities. Location quotients greater than one can be seen as export sectors. Table 1 presents the industrial profile of Ciudad Juarez, Cancún and urban Mexico in terms of their labor force. It should come as no surprise that Ciudad Juarez and Cancún reflect dissimilar industrial compositions based on their export specialization. According to the data, manufacturing represents the largest export sector in Ciudad Juarez (location quotient = 2.2), employing an estimated 47.8 percent of its local labor force, compared to only 6.3 percent in Cancún and 21.4 percent in urban Mexico. Within this category, employment is concentrated in the ‘computers, cars, and domestic appliances’ sector (37%), a subsector that reflects the highest location quotient of 7.7. An examination of Table 1 also shows a high employment concentration within Cancún’s service sector (51%), compared to Ciudad Juarez (25%) and urban Mexico (35%) (location quotient = 1.4). In the case of Cancun, we note a labor force concentrated in lower skilled services — 24 percent of its local labor force is employed in the hotels and restaurants sector (location quotient = 4.7), compared to 4 percent in Ciudad Juarez and 5 percent in urban Mexico. Overall, the data show a distinct industrial structure for the labor force in each case city. These differences can be attributed to the export-oriented economic base in each city. That is, global assembly production, as organized in Ciudad Juárez has tended to concentrate employment in the manufacturing sector, namely in the ‘cars, domestic appliances and computer’ sector. In contrast, international tourism, as organized in Cancún, has encouraged a concentration of formal employment opportunities in lower skilled services, namely in hotels and restaurants, and also the transportation, communication and public utilities sector.

[TABLE 2 HERE]

Gender and the Labor Force by Industrial Category. We now turn to a gender analysis of the labor force composition by industrial category. To what extent are the formal employment opportunities for women in each city different in terms of the types of industries they are employed? Table 2 summarizes data illuminating this question, showing substantial differences in the composition of the female labor force in each case city. For Ciudad Juarez, estimates reveal a high concentration of female labor force participation in manufacturing (54%), compared to 4 percent in Cancún and 19.5 percent national urban. Most of this concentration can be attributed to the computers, cars and domestic appliances sector, which incorporates 46 percent of active female labor. This figure is striking when looking at female participation rates in the same subsector in Cancun (less than 1%) and national urban estimates (5%). In contrast, Table 2 reveals a concentration of Cancun’s female labor in the services. For example, more than double the amount the female labor force in Cancún are found in the services (57.5%) when compared to Ciudad Juarez (27%). This raises the question as to which specific service related industries incorporate Cancún’s female labor. Table 2 reveals that female employment in Cancún, similar to male, is found predominantly in lower-skilled services. Namely, we observe that 23 percent of the

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female labor force is employed in the hotel and restaurant sector, compared to 4 percent in Ciudad Juarez and 7 percent as a national urban average. Also noteworthy is the difference in female employment opportunities in the personal services between each city, which reflects 19 percent of the female labor force in Cancún, compared with 6 percent in Ciudad Juarez. These results confirm that the predominant export sector in each city differentiates patterns of female employment measured by industrial category. As compared to Cancún and urban Mexico, women (and men) in Ciudad Juarez are substantially more likely to be employed in manufacturing, namely in industries producing computers, cars and domestic appliances. On the other hand, women (and men) within the local labor market of Cancún are more than five times more likely than female labor in Ciudad Juarez and three times more likely when compared to national urban estimates to be employed in hotel and restaurant industries. Overall, these results support theories suggesting that export industries in the developing world are somehow more open, than internally focused manufacturing for example, to female labor. We find that female employment in both Ciudad Juarez and Cancún are concentrated in export industries. This result suggests that indeed female labor is encouraged through increasing global integration and export specialization marking current socioeconomic trends in Latin America.

Given that both cities reflect export-oriented economic bases, we might also expect women to have a larger share of the labor force. We observe however that women in each case city do not have a larger share of the labor force, when compared to the estimated national urban average. In fact, the female share of the labor force in Ciudad Juarez (36.6%) and Cancún (31.5%) is lower than urban Mexico (38.2%). The lower share of the women in the formal labor force in each case city could be due to a higher rate of female participation in the informal economy. In Ciudad Juarez it could be that many women cross the border to El Paso to participate in informal economic activity (e.g. domestic service). In Cancun it could be that women are more likely to take part in Cancún’s informal economy focused on taking advantage of tourist-market opportunities. Having considered the different patterns of female employment in Ciudad Juarez and Cancún by industry, we turn now to the question of the extent to which the occupational structure in each city is different.

[TABLE 3 HERE] Gender and the Labor Force by Occupational Structure. As Galle (1963) points out, industrial and occupational categories are two different classification approaches, and “the classification of the labor force by one does not necessarily imply a set distribution with respect to the other” (265). Sociologists have long since recognized that the occupational structure of a community has a wide range of implications for community processes, social equity, occupational status and prestige. To investigate the types of occupational opportunities in different export oriented cities, the occupational composition of each city was compiled by gender (Table 3). Occupations were ranked by income data based on the national median monthly income

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of each category. The incorporation of this data allows us to evaluate the relative income prospects of occupations in each case city. Is the stratification of occupations in each city considerably different? It is clear from the results shown in Table 3 that there are substantive differences in the occupational structure of each city. In the case of Ciudad Juarez, the data show a distinct occupational strata that reflects the types of jobs associated with its specialization in global assembly production. Foremost we note that when compared to Cancún and the national urban average, both men and women in Ciudad Juarez are more likely to be in a supervisory role in industry and semi-skilled workers (machine operatives) in industry. In terms of the female occupational composition in Ciudad Juarez, our results are again quite striking. When compared to Cancun and national urban averages of Mexico, we find a concentration of women in occupational categories related to the larger than average manufacturing sector in Ciudad Juarez. For instance, 9.7 percent of the active female labor force in Ciudad Juarez are ‘supervisory workers in industry’, compared to 0.1 percent in Cancún and 1.5 percent of national urban estimates. This is a noteworthy difference, especially given the estimated national median income of this category, which ranks fifth out of 14. Another prominent distinction in the occupational stratification of Ciudad Juarez is the concentration of women in semi-skilled (machine operatives) occupations (32.6%) compared to Cancun (0.1%) and national urban averages (6.7%). Again, this occupational strata is explained by the nature of global assembly production in Ciudad Juarez. Finally, we note the lack of men and women workers in the ‘unskilled industry’ category. This finding shows that ‘maquiladora’ industries in Ciudad Juarez have encouraged semi-skilled, rather than unskilled workers. The occupational stratification of Cancún is also distinct and reflects its global specialization in tourism. As such, Table 3 reveals an overrepresentation of both male and female labor in occupations classified as ‘service workers’; 19.7 percent male and 17.5 percent female. Next, when compared to Ciudad Juarez and urban Mexico, we note that women in Cancún are more likely to be clerical workers and sales clerks. Finally, we observe a concentration of female domestic service workers in Cancún (15.3%), as compared to Ciudad Juarez (4.7%) and urban Mexico (12.0%). In examining Table 3, we can also see that female labor in Cancún is more concentrated, apart from clerical workers, within three of the least paid occupational categories (in terms of national urban median of monthly income) – domestic service, service workers, and sales clerks. In contrast, the stratification of female held occupations in Ciudad Juarez reflects more of a concentration within the medium-range occupational income earners. In the face of such data, it can be argued that women in Cancún are more concentrated in occupational categories that, on average, have worse income prospects than women of Ciudad Juarez. However, to obtain a clearer and more precise picture of the income opportunities available to women in each city, we need to investigate these relationships in more detail.

14

Income, Inequality, Women and Occupations Directly Related to Predominant Export Industry.12

[TABLE 4 HERE]

To what extent does the predominate export-industry generate, whether directly or

through linkages, different income patterns in each city? Table 4 presents the median monthly income of individuals in the labor force in both case cities and for urban Mexico as a whole. 13 From an examination of Table 4, we first note that the overall labor market in both export-oriented cities reflect a higher median income that urban Mexico. We also observe a slightly higher median income in Cancun when compared to Ciudad Juarez. However at the same time, we note a slightly higher median income for women workers in Ciudad Juarez than in Cancun. This data suggests that the female labor force in Ciudad Juarez is more concentrated in employment that, on average, promotes somewhat better income prospects than in Cancun.

[TABLE 5 HERE] To what extent do global assembly and international tourism foster income inequality within the labor market of each city? To arrive at a general answer to this question, we analyzed the income distribution in each city by deciles. We then computed a decile ratio for each case city and for urban Mexico. The decile ratio is a simple way of measuring the distribution of income between individuals in the labor force in each case city. The higher the decile ratio, the higher the difference between the richest and poorest individuals in the labor market. The values used here reflect the upper cut-off point of the first decile (the poorest 10%) and the lower cut-off point of the 10th decile (the richest 10%). Table 5 shows that the decile ratio varies from a minimum of 4.3 in Ciudad Juarez, to 5.1 in Cancun, to 7.3 in urban Mexico. The data show that income inequality in the labor market is slightly higher in Cancun than Ciudad Juarez. While the top 10 percent of the labor force in Ciudad Juarez earns at least 4.3 times the monthly income of

12 It is important to determine whether the cost of living in each case city differs substantively, which would affect the comparability of income levels. To arrive at an estimate that allows us to compare at a general level the cost of living between Ciudad Juarez and Cancun, we gathered figures from the Indice Nacional de Precios al Consumidor or National Consumer Price Index (CPI hereafter) compiled by El Banco de Información Económica (BIE). This index measures variations of the price level (in other words, inflation rates) over time in the retail price of a basket of consumer goods and services representative of the basic consumption patterns of households in Mexican metropolitan areas. This figure is measured monthly.

We averaged the CPI of each case city for the months that the analyzed data reflect (Oct, Nov., Dec. 1998). Since a CPI measure is not compiled for Cancun, we used the CPI of La Paz, Mexico, a city located in the state of Baja California. We are able to use the CPI of La Paz as an estimator of Cancun because it represents the city with the closest median income to Cancun and in addition hosts a rather large tourism industry. Figures show a similar CPI for each city during the last three months in 1998, Ciudad Juarez 268.12 and Cancun at 272.66 (base rate =100, 1994) (INEGIb). In other words, the rate of inflation was 168.12 percent in Ciudad Juarez and 172.66 in Cancun between the last three months of 1998 and the base year of 1994. Since these rates of inflation are relatively similar, we can deduce that the income levels of Ciudad Juarez and Cancun are comparable. 13 Since income data is not normally distributed, the median, instead of the mean, is a better and more conservative estimate of central tendency. The median resists the presence of outliers, which are often present in income data.

15

the bottom 10 percent of the population, the top 10 percent of individuals in the labor force in Cancun earn at least 5.1 times the bottom 10 percent of individuals in the labor force in Cancun. Further, the data show that income inequality between individuals in the labor force is higher in urban Mexico (average of 44 urban centers) than both Ciudad Juarez and Cancun. This difference is most likely explained by the large, more dualistic core urban centers represented in this urban sample such as Mexico City, Guadalajara and Monterrey.

[TABLE 6 HERE]

Finally, to add richer more nuanced detail to our general analysis of income, we isolated the occupations directly related to each city’s predominate export industry to investigate if those occupations differentiate income opportunities, especially for women. To be concise, we limit our analysis to the occupational categories that reflect some of the sharpest employment differences between case cities (see Table 6). By organizing the data in this manner, we are better able to evaluate the extent to which particular export activities promote different income opportunities for women in each city. Given the smaller sample size of some cells in Table 6, confidence limits of the medians based on the sample data are reported.14 Are the earnings of female workers in key occupations related to the predominate export industry of each city different? We observe mixed results. Among our most interesting results is the discovery that some key occupations related to global assembly production have a higher median income than some key occupations directly related to tourism, especially for women. Foremost, we note that the monthly median income of female supervisory workers in Ciudad Juarez (1,935 Mexican pesos) is higher than those women employed in service work (1,400 pesos) and domestic service (1,075 pesos) in Cancun. Having said this however, we also observe a concentration of female labor in Cancún employed in clerical work; the occupation with the highest monthly median income out of the five occupational categories analyzed. According to our sample, controlling for city and gender, we observe that women clerical workers in Cancún have a median monthly income of 2,200 pesos per month, 200 pesos higher than the national urban median. Furthermore, we observe only a slight difference in the monthly median income between those women in semi-skilled industrial occupations in Juarez and service work in Cancun.15 In the face of such data, we interpolate the following. First, according to the sample, both global assembly and international tourism, as organized by case cities, tend to encourage a concentration of some occupations that offer better income prospects, on average, than others do. For women in Ciudad Juarez, our results suggest that the higher-

14 Income data was not normally distributed, thus medians provided a better central tendency estimate, than the mean. 95% Confidence limits of the medians were estimated with the following equation N/2 +/- .98 * square root of N = lower and upper limit case. Data was then sorted in ascending order to determine the actual observation of lower and upper case (See Woodruff 1952 for more details). Because a median is a nonparametric statistic, the confidence intervals are not symmetric. 15 However at the 75th percentile, we observe that service work in Cancun has a higher income than semi-skilled (machine operatives) in Ciudad Juarez.

16

paid jobs directly related to global assembly are generally in ‘supervisory positions in industry’ (an estimated 9.7 percent of the female labor force). In contrast, for women in Cancun, our results suggest that the higher-paid jobs directly related to international tourism are generally in ‘clerical work’ (an estimated 21 percent of the female labor force). Second, both export-oriented industries tend to generate a concentration of female workers in dissimilar occupations with similar income opportunities. Here, we refer to those women employed in semi-skilled (machine operatives) occupations in Juarez and in service work in Cancun. Lastly, our results suggest that the occupation with the lowest income prospects for women out of all five occupations analyzed, is domestic service work in Cancun.

Although these results illuminate one substantive indicator of the job quality related to the occupations encouraged by the export-oriented industry in each city, they do not provide information about more qualitative aspects of a job. In other words, income reflects on one, albeit important, of the many measures of job quality. In order to give a clearer picture of the quality of occupations promoted by dissimilar export-oriented industries in each case city, future research needs to analyze income along with other job-quality indicators such as hours worked, benefits, work setting, flexibility, and worker autonomy. DISCUSSION AND CONCLUSIONS In this paper we have used ENEU data to compare the labor market implications of two dissimilar export oriented industries. We examined the labor market of an urban center of global assembly production (Ciudad Juarez, Mexico) and an urban center of international tourism (Cancún, Mexico). There are several broad conclusions to draw from this examination. First, our analysis provides concrete evidence that the export-oriented economic base of each city generates a distinct labor force characteristics. While global assembly production as organized in Ciudad Juárez has tended to concentrate employment in the manufacturing sector (mostly in cars, domestic appliances and computer sector), international tourism in Cancún, has encouraged a concentration of formal employment opportunities in services, namely in hotels and restaurants, but also in the transportation, communication and public utilities sector. Second, it is clear from the results shown in Table 2 & 3 that the dominant export industry in each city differentiates the industrial and occupational composition of the female labor force. In Ciudad Juarez, our results show a concentration of women in ‘supervisory workers in industry’ and ‘semi-skilled (machine operatives)’ occupational categories. In contrast, we observed an overrepresentation of female labor in Cancún within occupations classified as ‘clerical workers’ ‘service workers’, sales clerks, and ‘domestic service’. We also observed a different income structure in each case city. In this section, we first noted while the labor force in Cancun has a slightly higher median monthly income than Ciudad Juarez, the female labor force in Ciudad Juarez has a slightly higher median income than in Cancun. Next, computing a decile ratio of the income of

17

individuals in the labor force, we found that that income inequality in the labor market is slightly higher in Cancun than Ciudad Juarez.

Finally, while theoretical perspectives suggest that both global assembly production of manufactures (Cravey 1998, Ward 1990) and international tourism (Levy and Lerch 1991; Casellas and Holcomb 2001) tend to promote low-wage employment opportunities for women, our analysis suggests that each industry promotes a mix of income prospects for women in occupations directly related to the export sector in each case city. In Ciudad Juarez, ‘supervisory positions in industry’ reflect a direct export-related occupation that exhibits the best income opportunities for women, on average. In contrast, clerical work in Cancun reflects an export-related occupation that presents the best income prospects for women, on average.16 Next, we observed rather similar income prospects in dissimilar occupations encouraged by city’s export sector; between those women that occupy semi-skilled (machine operatives) occupations in Juarez and service work in Cancun. Lastly, we identified the occupation offering the worst income opportunities for women across both case cities, that of domestic service in Cancun. Although the future labor market implications emerging from the current period of export development in Latin America are difficult to predict, it is clear that the type of export-oriented growth strategies encouraged by governments will differentiate the employment and income opportunities emerging in local communities that pursue variants of such approaches. While the labor market implications following distinct export-based strategies will depend on many factors including historical circumstance, national and regional polices, and the local labor supply; labor market outcomes may first depend on the strategic type and mode of export-based development that local communities adopt. As trends toward export promotion in Latin America show no signs of abating, research needs to further investigate the labor market implications of a wide variety of export-oriented development strategies implemented between and within countries. In addition to further comparative analysis using large-scale employment surveys, qualitative field research needs to be developed in order to evaluate with more detail the ‘quality of work’ associated with growing export-oriented sectors. As Weiss (1994) puts it, “interviewing gives us access to the observations of others . . . we can learn about the work of occupations and how people fashion their careers. . . and about the challenges people confront as they lead their lives” (1). Such focal points will promote a better understanding of the links between export-led industrialization and the dynamic transformation of labor markets currently emerging from processes of economic globalization in Latin America. AGKNOWLEDGEMENTS We gratefully acknowledge the assistance of Georgina Rojas-García, whose help with the data and SAS programming in the beginning of this project was invaluable. We also give a special thanks to Dr. Bryan Roberts whose efforts brought ENEU to the data library of the Population Research Center of the University of Texas at Austin. Finally, we thank those who made helpful comments reading earlier versions of this article, especially Omer Galle and Arthur Sakamoto. 16 Of course, not all clerical work is related to the tourism sector, however many are directly related. We know this by the concentration of female workers in clerical work in Canucn, in comparison with the national urban figures.

18

TABLE 1 Percent Distribution of Employed Labor Force, Nine Broad Industrial Categories by Two Export

Oriented Cities and Mexico (urban average)

AREA OF EMPLOYMENT

Ciudad Juarez

Cancun

Mexico

Location quotient d

Juarez Cancun

Agriculture……………………… .3 .3 2.0 .2 .2 Mining, petrol, gas……………… 0 .1 .5 0 .2 Construction……………………. 3.3 5.8 6.0 .6 1.0 Manufacturing a…………………. Computers, Cars, domestic Appliances (of total l. f.)…………..

47.8

37.1

6.3

.08

21.4

4.8

2.2 .3

7.7 .02 Transportation, communication and Public Utilities………………

3.7

12.4

6.3

.6 2.0

Wholesale and Retail trade b……. 14.7 21.2 21.7 .7 1.0 Services………………………… Professional/Tech Serv…...………….. Educational Serv……………………… Medical Serv………………………….. Hotels, Restaurants…………………… Personal Services …………………….. Recreational services…………………. Rental and Repair services……………

25.4

5.0 2.6 3.1

4.1 3.2 1.2 6.2

50.6

3.7 3.4 2.0

24.2 8.5 3.2 5.6

35.0

4.0 6.3 3.9

5.1 7.8 1.4 6.5

.7 1.4

1.3 1.0 .4 .5 .8 .5

.8 4.7 .4 1.1 .9 2.3 1.0 .9

Public Administration…………. 1.6 3.6 6.4 .3 .6 International Organizations……. 3.1 0 .7 4.4 0 Totals c (Sample size)

100 (3513)

100 (2502)

100 (167,931)

Source: ENEU 1998; Quarter 4 Notes: 1. The category of ‘informal trade’ was subtracted out of total. This was done, as the sample size of this industrial category was too small to enable substantive analysis. In addition, this study is focused on formal sector work only. a Includes Food and drink industries, textile and garment industries, shoe and leather industries, wood and -paper industries, intermediate industries—chemicals, plastics, glass, and cement. b Includes retail sales, wholesale and real estate. c Totals may be slightly higher than 100 due to rounding error. d A location quotient is a measure that identifies the export sectors in each city. The export -oriented labor force will have a higher proportion of workers than does the national urban average of Mexico, where % of labor force of City A/ % of labor force of national average. Quotients that are > 1 (greater than one) can be seen as export -oriented industrial categories. Quotients < 1 (less than or equal to 1) are non-export.

19

TABLE 2 Estimated Per Cent Distribution of Employed Labor force (in Columns), Nine Industrial Categories,

By Gender and City

% OF MALE LABOR FORCE % OF FEMALE LABOR FORCE

AREA OF EMPLOYMENT

Ciudad Juarez

Cancun

Mexico (Urban)

Ciudad Juarez

Cancun Mexico (Urban)

Agriculture…………………. .4 0.4 2.8 .08 0 0.6

Mining, petrol, gas….……..

0

0.1

0.7

0

0

0.2

Construction…………………

4.6

8.1

9.0

0.2

0.6

0.7

Manufacturing a……………. Computers, Cars, domestic Appliances (of total i.c.)…….

44.3

32.0

7.3

0.1

22.6

4.5

53.9

45.9

3.7

0.1

19.5

5.3

Transportation, Communication and Public Utilities……………………

5.3

15.8

9.1

1.0

4.9

2.1 Wholesale and Retail trade b…

15.6

17.0

19.0

13.6

30.5

26.1

Services…………………….. Professional/Technical…...….. Educational Services……….. Medical Services……………. Hotels, Restaurants……….. Personal Services.. Recreational Services……….. Rental and Repair Services…. Public Administration/defense………

24.6 4.2 2.1 1.6

4.0 1.7 1.5 9.5

2.0

47.3 3.6 2.0 1.3

24.6 3.6 4.0 8.1

3.9

29.0 4.1 4.0 2.2

4.2 3.3 1.7 9.7

6.8

27.3 6.5 3.5 5.7

4.4 5.6 1.0 0.6

1.2

57.5 4.0 6.8 3.0

22.9 19.0 1.5 0.3

2.8

44.7 3.8

10.2 6.7

6.7

15.3 1.0 1.0

5.8 International Organizations….

3.2

0

0.9

2.9

0

0.4

Percentage total c % of total labor force Sample Size

100

63.4

2,230

100

68.5

1,713

100

61.8

103,850

100

36.6

1,283

100

31.5

789

100

38.2

64,081

Source: ENEU 1998; Quarter 4 Notes: 1. The category of ‘informal trade’ was subtracted out of total. This was done as the sample size of this industrial category was too small to enable substantive analysis. In addition, this study is focused on formal sector work only. a Includes Food and drink industries, textile and garment industries, shoe and leather industries, wood and -paper industries, intermediate industries—chemicals, plastics, glass, cement b Includes retail sales, wholesale and real estate c Totals may be slightly higher than 100 due to rounding error.

20

TABLE 3 Percent Distribution of Employed Labor Force (In Columns), Fourteen Occupational Categories

Ranked by National Median Monthly Income, By Sex and City

Monthly Median Income (In Pesos)

% OF MALE LABOR FORCE

% OF FEMALE LABOR FORCE

OCCUPATIONAL CATEGORY

Mexico (Urban)

Ciudad Juarez

Cancun Mexico (urban)

Ciudad Juarez

Cancun Mexico (Urban)

Managers and Administrators……….

6000

2.8

3.5

3.9

1.0

2.2

1.9

Supervisory white-collar workers………..

4000

3.3

3.1

3.5

2.9

2.9

2.9

Professional & Technical…………….

3295

8.3

8.2

8.7

8.1

6.0

9.8

Semi-professional a….

3000

2.1

3.0

3.1

3.4

5.7

7.6

Supervisory workers in Industry……………..

3000

6.7

2.2

3.2

9.7

0.1

1.5

Clerical workers……

2000

5.8

5.9

5.5

13.3

21.1

15.3

Security workers……..

2000

3.1

3.6

4.1

0.6

0.7

0.4

Skilled Workers in Industry………………

1720

23.0

31.6

26.2

2.4

4.2

6.6

Semi skilled (machine operatives) in industry…………..

1720

21.1

1.8

6.8

32.6

0.1

6.7

Sales clerks…………

1500

8.9

10.9

12.0

10.7

22.7

19.6

Unskilled workers in Industry………………

1290

5.2

5.2

8.6

4.2

1.7

3.0

Service Workers in hotels, etc. b………

1290

9.0

19.7

11.1

6.3

17.5

12.6

Workers in Agri……

1200

0.6

0.5

2.4

0.2

0.1

0.3

Domestic service workers………………

860

0.2

0.7

1.0

4.7

15.3

12.0

Percentage Total…. Sample Size……….

---------

159,677

100 2,177

100 1,702

100 100,990

100 1,186

100 727

100 58,687

Source: ENEU 1998 4th Quarter a Includes non-university teachers, artists, and sports. b Includes ambulatory sales

21

TABLE 4 Median Monthly Income of Individuals in the Labor Force by City and Gender

INCOME IN MEXICAN PESOS

Ciudad Juarez

Cancun

Urban Mexico

Median Monthly Income………… 1,935

2,000

1,720

Median Monthly Income (Male). 2,150 2,150 1,935 Median Monthly Income (Female).

1,720

1,617

1,400

Total Sample Size……………….. Male…………………………… Female………………………….

3,242 2,056 1,186

2,419 1,671 748

154,488 96,095 58,393

Source: ENEU 1998; Quarter 4 Notes: 1. The median income is the number which divides the population into two equal groups, those above and those below. 2. The distribution of income data is asymmetrical. We thus observe a higher overall median income in Cancun compared to Ciudad Juarez, the same median income for Males in both cities, and a higher median income of female workers in Ciudad Juarez when compared to Cancun.

TABLE 5 Income Inequality between Individuals in the Labor Force by Two Export-Oriented Cities and

Urban Mexico; Decile Ratio (Monthly Income in Mexican Pesos)

Ciudad Juarez

Cancun

Urban Mexico

The Richest (Top 10%). 5,590

5,050

5,000

The Poorest (Bottom 10%) 1,290 1,000 688 Decile Ratio

4.3

5.1

7.3

Total Sample Size………………...

3,242

2,419

154,488

Source: ENEU 1998; Quarter 4 Notes: 1. In this table, the Decile Ratio is the ratio between the top of the bottom decile and the bottom of the top decile, of all individuals in the labor force. This measure, because it takes the bottom of the top and the top of the bottom, slightly understates the overall gap between the top and the bottom of the income distribution.

2. Income inequality may be different among families, households, unemployed and the elderly

22

TABLE 6 Median Monthly Income (in pesos) of Predominant Export Related Occupations, By City and Sex,

and in Comparison with Urban Mexico17

Male Female OCCUPATIONAL CATEGORY Ciudad

Juarez Cancun Mexico

(urban) Ciudad Juarez

Cancun Mexico (urban)

Supervisory Workers in Industry……………….. Lower Limit c ………….. Upper Limit……………. % of Labor Force in Occupational Category..

2,580 (139)a 2,494 3,440 6.7

--------b 2.2

3,440 (2930) 3,397 3,440 3.2

1,935 (113) 1,806 1,978 9.7

------- 0.1

1,935 (839) 1,920 2,032 1.5

Semi-Skilled (machine Operatives) in Industry... Lower Limit…………. Upper Limit…………. % of Labor Force in Occupational Category..

1,634 (453) 1,634 1,677 21.1

------- 1.8

1,806 (6596) 1,800 1,849 6.8

1,634 (380) 1,591 1,634 32.6

--------- 0.1

1,505 (3775) 1,505 1,548 6.7

Clerical Workers Lower Limit…………….. Upper Limit…………… % of Labor Force in Occupational Category.

--------- 5.8

2,200 (99) 2,000d 2,500 5.9

2,000 (5180) 2,000 2,111 5.5

--------- 13.3

2,200 (144) 2,000 2,400 21.1

2,000 (8117) 2,000 2,000 15.3

Service Workers (includes Hotels & restaurants) Lower Limit……………… Upper Limit…………….. % of Labor Force in Occupational Category...

-------- 9.0

1,720 (324) 1,562 2,000 19.7

1,290 (10047) 1,240 1,548 11.1

--------- 6.3

1,400 (114) 1,260 1,505 17.5

1,075 (6154) 1,075 1,100 12.6

Domestic Service……… Lower Limit…………….. Upper Limit…………….. % of Labor Force in Occupational Category..

---- 0.2

----- 0.7

----- 1.0

----- 4.7

1,075 (110) 909 1,075 15.3

800 (6866) 800 860 12.0

Source: ENEU 1998 4th quarter Notes: a = sample size b To simplify this table, we omitted the income data for those occupations that were not of direct comparative importance. c 95% Lower and Upper Limit = N/2 +/- .98 sqrt. N. Data was then sorted in ascending order to determine observations of those particular cases. See Woodruff (1952) for theoretical justification of this method. d Income data is not normally distributed. Thus, the median, when compared to the mean, is a better, albeit conservative estimate of monthly income. Because the median is a nonparametric statistic, its confidence interval is not symmetric.

17 See appendix for percentile range of the income for each reported occupational category by women.

23

APPENDIX A) Percentile Range of Monthly Median Income of Women (in Pesos) in Selected Occupations, By City18 Supervisory Workers in Industry

Ciudad Juarez Urban Mexico

Semi-Skilled (Machine-Operatives) in Industries

Ciudad Juarez Urban Mexico Q3 (75%)

2,365 2,600

1,720 1,901

Q2 (50%)

1,935 1,935

1,634 1,505

Q1 (25%)

1,651 1,505

1,376 1,290

B) Percentile Range of Monthly Median Income of Women (in Pesos) in Selected Occupations, by City Clerical Workers

Cancun Urban Mexico

Service Workers

Cancun Urban Mexico

Domestic Service

Cancun Urban Mexico Q3 (75%)

3,000 2,700

2,000 1,600

1,290 1,075

Q2 (50%)

2,200 2,000

1,400 1,075

1,075 800

Q1 (25%)

1,600 1,419

1,075 774

774 516

18 These statistics are percentiles. In general, the percentile is a value below which lies p% of the data. The lower quartile, median and upper quartile indicate values of X below which lie 25%, 50%, and 75% of the data values, respectively.

24

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