Can Maquila Booms Reduce Poverty? Evidence from Honduras

This paper identifies and estimates the strength of the reduction in poverty linked to improved opportunities for women in the expanding maquila sector. A simulation exercise shows that, at a given point in time, poverty in Honduras would have been...

Full description

Bibliographic Details
Main Authors:	de Hoyos, Rafael E., Bussolo, Maurizio, Núñez, Oscar
Format:	Policy Research Working Paper
Language:	English
Published:	Washington, DC: World Bank 2012
Subjects:	AGRICULTURAL POLICY AGRICULTURAL SECTOR ANNUAL WAGE ANNUAL WAGES AVERAGE WAGE AVERAGE WAGES BENEFICIARY COST OF LABOR COUNTERFACTUAL DECLINE IN POVERTY DECOMPOSABLE POVERTY DECOMPOSABLE POVERTY MEASURES DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DISCRIMINATION DISPOSABLE INCOME DOMESTIC MARKETS EARNINGS ECONOMIC GROWTH ECONOMIC MANAGEMENT ECONOMIC TRENDS EMPLOYMENT CREATION EMPLOYMENT SOURCE ESTIMATION RESULTS EXTERNAL SHOCK EXTREME POVERTY EXTREME POVERTY LINE FAMILY MEMBER FARMERS FEMALE WORKERS FINANCIAL SERVICES FINANCIAL SUPPORT FIXED EFFECTS FOOD POLICY FORMAL EDUCATION GENDER DISCRIMINATION GENDER GAP GINI COEFFICIENT HEADCOUNT RATIO HIGH CONCENTRATION HOUSEHOLD EXPENDITURE HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD PER CAPITA INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HUMAN CAPITAL INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INDUSTRIAL SECTOR INEQUALITY INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR SUPPLY LEVEL OF CONFIDENCE LOW WAGES MACROECONOMIC PERFORMANCE NATIONAL LEVEL NATIONAL POVERTY NATIONAL POVERTY HEADCOUNT NEW JOB NEW JOBS NUMBER OF HOUSEHOLDS NUMBER OF WORKERS OPPORTUNITIES FOR WOMEN PER CAPITA INCOMES POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR POPULATION SUBGROUPS POTENTIAL CONTRIBUTION POVERTY ALLEVIATION POVERTY GAP POVERTY IMPACT POVERTY INDICES POVERTY LEVEL POVERTY MEASURES POVERTY RATE POVERTY RATES POVERTY REDUCTION PRICE MECHANISMS PRODUCTIVITY PROGRESS PURCHASING POWER REDISTRIBUTING RESOURCES REDUCING POVERTY REDUCTION IN POVERTY REDUCTION OF POVERTY RESPECT RURAL RURAL AREAS RURAL URBAN NATIONAL RURAL WAGES SALE SCHOOLING SECTOR ACTIVITY SIGNIFICANT EFFECT SIGNIFICANT REDUCTION TOTAL POVERTY TRADE LIBERALIZATION TRADE OPENNESS TRADE POLICY TREATIES UNEMPLOYED URBAN AREAS URBAN WORKERS WAGE WAGE DIFFERENTIALS WAGE GAP WAGE GAPS WAGE PREMIUM WELFARE MEASURE WOMAN WORKFORCE WORKING-AGE POPULATION WORLD TRADE
Online Access:	http://documents.worldbank.org/curated/en/2008/12/10064148/can-maquila-booms-reduce-poverty-evidence-honduras-can-maquila-booms-reduce-poverty-evidence-honduras http://hdl.handle.net/10986/6301

Description
Summary:	This paper identifies and estimates the strength of the reduction in poverty linked to improved opportunities for women in the expanding maquila sector. A simulation exercise shows that, at a given point in time, poverty in Honduras would have been 1.5 percentage points higher had the maquila sector not existed. Of this increase in poverty, 0.35 percentage points is attributable to the wage premium paid to maquila workers, 0.1 percentage points to the wage premium received by women in the maquila sector, and 1 percentage point to employment creation. Given that female maquila workers represent only 1.1 percent of the active population in Honduras, this contribution to poverty reduction is significant.

Can Maquila Booms Reduce Poverty? Evidence from Honduras

Similar Items