This paper uses the 1994 North American Free Trade Agreement (NAFTA) and granular data on Mexican municipalities to study the local effects of trade liberalization on college wage premia, housing costs, and urban amenities between 1990 and 2010. I measure local exposure to international trade by constructing a market access database of each municipality's lowest-cost route to the closest US truck port. I find that municipalities facing larger trade exposure experienced: (1) declines in local wage differences between college and noncollege graduates, both in nominal and real terms; (2) smaller increases in local urban amenities. I interpret these results under the notion of spatial equilibrium in which non-monetary urban amenities compensate for gaps in real wages across cities.

Using census microdata for Mexico during 1990-2010, this paper documents a disproportionate increase in female-to-male gaps in working hours in smaller compared to larger municipalities. This coincides with a more rapid increase in the share of services in smaller locations that initially specialized in primary activities and manufacturing. Motivated by these stylized facts, I quantify the impact of industry-specific labor demand shocks on local gender gaps in working hours across municipality sizes. I find that the interaction between industry specializations, industry differences in female labor intensities, and the rise of the service economy boosted female employment in smaller cities.