Abstract
One of the main factors in plant location decisions for international manufacturing companies is the cost of labor. However, the cost of labor is not a static parameter since the presence of multiple companies in a new region increases the competition for limited labor availability. This, in turn, increases labor turnover and labor cost. In this paper, we use the case of Mexican Maquiladoras to review the impact that the presence of new industrial plants have on wages and labor turnover and to highlight that companies should consider the dynamic aspects of industrial employment to make plant location decisions.
| Original language | English (US) |
|---|---|
| Title of host publication | IIE Annual Conference and Expo 2008 |
| Pages | 1778-1783 |
| Number of pages | 6 |
| State | Published - 2008 |
| Event | IIE Annual Conference and Expo 2008 - Vancouver, BC, Canada Duration: May 17 2008 → May 21 2008 |
Other
| Other | IIE Annual Conference and Expo 2008 |
|---|---|
| Country/Territory | Canada |
| City | Vancouver, BC |
| Period | 5/17/08 → 5/21/08 |
Keywords
- Cost of labor
- Labor turnover
- Plant location
ASJC Scopus subject areas
- Computer Science Applications
- Software
- Industrial and Manufacturing Engineering