Using household and establishment level data which span the 1990s, we examine the
impact of trade liberalization policies on women’s labor market outcomes in Mexico. We find that
that women’s relative wage remained stable while employment increased, leading to an increase in
women’s wage bill share. Between-industry shifts, consistent with trade-based explanations, account
for up to 40 percent of the growth in women’s wage bill share between 1990 and 2000. Comparing
across industries, we find tariff cuts and exports are positively related to industry growth and women
benefited since some of the fastest growing industries were female-intensive industries. We use
establishment level data for the manufacturing sector to examine within-industry shifts in women’s
wage bill share. Even controlling for detailed industry and maquiladora status, women’s wage bill
share is positively related to exports by foreign firms, suggesting that trade liberalization further
encouraged outsourcing and assembly-type activity. Finally, we find suggestive evidence that
household bargaining power shifted in favor of women. Expenditures shifted from goods associated
with male preference, such as men’s clothing and tobacco and alcohol, to those associated with
female preference such as women’s clothing and education.