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Emigration and Wages in Source Countries: Evidence from Mexico

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Author Info
Prachi Mishra
Abstract

This paper empirically examines the effect on wages in Mexico of Mexican emigration to the United States, using data from the Mexican and United States censuses from 1970-2000. The main result in the paper is that emigration has a strong and positive effect on Mexican wages. There is also evidence for increasing wage inequality in Mexico due to emigration. Simple welfare calculations based on a labor demand-supply framework suggest that the aggregate welfare loss to Mexico due to emigration is small. However, there is a significant distributional impact between labor and other factors.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/86.

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Length: 35 pages
Date of creation: 11 Apr 2006
Date of revision:
Handle: RePEc:imf:imfwpa:06/86

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Related research
Keywords: Emigration; wages; wage inequality; Mexico ;

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  1. Gordon H. Hanson & Craig McIntosh, 2007. "The Great Mexican Emigration," NBER Working Papers 13675, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Raymond Robertson, 2006. "Globalization and Mexican labor markets," Proceedings, Federal Reserve Bank of Dallas, pages 61-80. [Downloadable!]
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