Foreign direct investment and youth educational outcomes in Mexican municipalities

Inward foreign direct investment (IFDI) has often been considered to play a prominent role in the development of human capital host economy by introducing wage premium into labour market. However, extant evidence on IFDI market effects is inconclusive, especially emerging economies. We investigate for case Mexico whether premia have an effect educational outcomes young cohorts that were 15 years old at time arrival their municipality residence. Results suggest increasing unskilled jobs, both manufacturing and services, negative cohort's subsequent outcomes. The skilled workers, however, are not significant but may lead positive long-term implications losses accruing from low do only affect individuals regions as well.