Employee turnover in the Maquiladoras

Abstract

In a country beset with a myriad of economic woes, the maquila (in-bond) program has been a major success story for Mexico. From its inception barely twenty years ago, the maquila program has grown dramatically. By 1987 there were approximately 1,000 maquila plants, employing over 330,000 workers and contributing nearly three billion dollars to the Mexican economy (Instituto Nacional 1988). As a source of income to the Mexican economy, the maquila industry has moved into second place, ahead of tourism, trailing only oil. And while the oil industry has been buffeted by dramatic price fluctuations, the income from the maquila industry has been stable and rising. Furthermore, most of the investment capital is provided by the parent (non-Mexican, generally U.S.) firms, a tremendous benefit for a country which has virtually no available funds left for private investment (Royatyn and Altman 1986).

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