Maquiladoras Case Study

households, the low wages mean that the employed individuals are limited in their ability to reinvest in the Mexican consumer market. Biles comparatively presents the multiplier effect of the maquiladora program in the Yucatan region; he concludes that the low wages and the corporations’ lack of investment into the regional markets hinders the policy’s ability to provide long-term development. The maquiladoras are not able to act like efficient labor multipliers and “every 1,000 export-oriented jobs in Me´rida generate only 111 additional employment opportunities” . Biles presents that in his case study of the Yucatan Peninsula “jobs created by maquiladoras represent less than 1% of employment.” Opposed to what the government promises, the impact “the EOI strategy (export oriented strategy) on overall economic structure is minimal.” In comparison, the maquiladoras and factories that are owned by local Mexican corporations “are more likely to expand their local linkages than foreign-owned assembly plants.” However the policies that the government has put in place favor the
However it necessitates investigation into how the policy of maquiladoras has effected human development on the variables of living wages, gender equity of maquiladora workers, national investment to labor and social service conditions in Mexico. Human development is an inclusive concept that prioritizes how people must be empowered by their work and possess social mobility to expand their opportunities, the maquiladora industry does the opposite. The wages of maquiladora employment are barely enough to sustain the cost of living and therefore prevent workers from investing back into