IDEAS home Printed from https://ideas.repec.org/p/dbl/dblwop/1082.html
   My bibliography  Save this paper

Taking One for the Team: Shocks at Destination and Households' Supply of Migrants

Author

Listed:
  • Fajardo, Gustavo
  • Gutiérrez, Emilio
  • Larreguy, Horacio

Abstract

We study how unemployment shocks in the United States affect Mexican households’ migration decisions. We emphasize households at origin (as op-posed to individuals) as the decisionmaking units for migration decisions. We show that negative changes in US labor market conditions, which are diffused by household members at destination to those at origin, lead to heterogeneous migration responses by Mexican households that have members abroad. We argue that this heterogeneous response is driven by the relative magnitudes of income and substitution effects after a negative employment shock in the United States. While the income effect dominates the substitution effect for poor households, the opposite holds for richer households. These results also inform the literature on selection patterns in international migration, which suggests a new channel through which negative shocks in the host economy negatively affect the skill composition of subsequent migrants.

Suggested Citation

  • Fajardo, Gustavo & Gutiérrez, Emilio & Larreguy, Horacio, 2017. "Taking One for the Team: Shocks at Destination and Households' Supply of Migrants," Research Department working papers 1082, CAF Development Bank Of Latinamerica.
    • Handle: RePEc:dbl:dblwop:1082
    as

    Download full text from publisher

    File URL: https://scioteca.caf.com/handle/123456789/1082
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luis Arango & Dolores Mata & Nataly Obando, 2015. "Echoes of the crises in Spain and US in the Colombian labor market: a differences-in-differences approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(4), pages 441-477, November.
    2. Gröger, André, 2021. "Easy come, easy go? Economic shocks, labor migration and the family left behind," Journal of International Economics, Elsevier, vol. 128(C).

    More about this item

    Keywords

    Economía; Investigación socioeconómica; Trabajo y protección social;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dbl:dblwop:1082. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Pablo Rolando (email available below). General contact details of provider: https://edirc.repec.org/data/cafffve.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.