The skilling practices of the Mexican firms and their outcomes for workers and firms

Abstract

This chapter presents the findings of the micro-level analysis on the skilling practices of the Mexican auto parts-automotive industry suppliers. It discusses how the governance structures in auto parts - automotive value chains and national institutions in Mexico affect auto parts suppliers’ strategies to find workers with skills necessary for them. It evaluates the outcomes of skilling strategies for firms and workers, which then helps to realise the high-road development prospects of Mexico. The chapter shows that the institutional complementarities of the Mexican skill system, in which the state’s involvement is low, leads to several types of skilling practices in Mexican auto parts-automotive industry firms. Such variation of skilling practices, moreover, limits the mobility of workers from disadvantaged backgrounds, creates inequalities between smaller and larger firms, and restricts smaller firms’ competitiveness in global auto parts-automotive value chains. Therefore, the chapter argues that the Mexican skill system is not likely to lead to high-road development in the country.