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International job search: Mexicans in and out of the US

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  • Sílvio Rendon

    ()

  • Alfredo Cuecuecha

    ()

Abstract

It is argued that migration from Mexico to the US and return migration are determined by international wage differentials and preferences for origin. We use a model of job search, savings and migration to show that job turnover is a crucial determinant of the migration process. We estimate this model by Simulated Method of Moments (SMM) and find that migration practically disappears if Mexico has American arrival rates while employed. Doubling migration costs reduces migration rates in half, while subsidizing return migration in $300 reduces migration rates of older migrants but increases migration rates of younger migrants.

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Bibliographic Info

Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 8 (2010)
Issue (Month): 1 (March)
Pages: 53-82

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Handle: RePEc:kap:reveho:v:8:y:2010:i:1:p:53-82

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Web page: http://www.springerlink.com/link.asp?id=109451

Related research

Keywords: International migration; Job search; Job turnover; Savings; Structural estimation; F22; J64; E20;

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Cited by:
  1. Adams Jr., Richard H. & Cuecuecha, Alfredo, 2010. "Remittances, Household Expenditure and Investment in Guatemala," World Development, Elsevier, vol. 38(11), pages 1626-1641, November.
  2. Adams, Richard H. & Cuecuecha, Alfredo, 2013. "The Impact of Remittances on Investment and Poverty in Ghana," World Development, Elsevier, vol. 50(C), pages 24-40.

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