TY - CHAP AB - The objective of this chapter is to estimate the parameters defining female labor participation and occupation decisions in mexico. Based on a theoretical framework, we use micro data to estimate the wage-participation elasticity in urban Mexico. Consistency between the selectivity-adjusted wages and the multinomial participation equations is achieved via a two-step estimation procedure following Lee (1983). We use the results of our model to test and quantify three hypotheses explaining recent increases in female labor participation in urban mexico. Our results show that the observed 12 percent increase in female labor participation in mexico between 1994 and 2000 is explained by the combination of a negative income shock caused by the 1994–1995 participation; wage differentiaeso crisis, the increase in expected wages taking place in the manufacturing sector during the post-North American Free Trade Agreement (NAFTA) period, and a reduction in female reservation wage. VL - 33 SN - 978-1-78052-333-0, 978-1-78052-332-3/0147-9121 DO - 10.1108/S0147-9121(2011)0000033006 UR - https://doi.org/10.1108/S0147-9121(2011)0000033006 AU - De Hoyos Rafael E. ED - Solomon W. Polachek ED - Konstantinos Tatsiramos PY - 2011 Y1 - 2011/01/01 TI - Chapter 3 Female Labor Participation and Occupation Decisions in Post-NAFTA Mexico T2 - Research in Labor Economics T3 - Research in Labor Economics PB - Emerald Group Publishing Limited SP - 85 EP - 127 Y2 - 2024/04/16 ER -