Employment and effective demand in the textile, garment and leather industry of the Mexican economy

This document analyses the impact of effective demand on employment level of the 51 classes of economic activity, which conform subsector 32 of the manufacturing industry in Mexico. Specifically, the document identifies the classes of economic activity that represent an acceptable probability of generating employment above the subsector's average. To that end, three models of discrete choices are estimated: a linear probability model, a Logit model, and a Probit model. The estimations are performed with the purpose of comparing alternative results and selecting the most efficient model to explain the statistical relationship previously mentioned. The empirical results indicate that the Probit model exhibits the best fit to explain the capacity of generating jobs.