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Emigration and Wages in Source Countries

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  • Prachi Mishra
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    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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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18983
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    Bibliographic Info

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

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    Length: 35
    Date of creation: 01 Mar 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/86

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    Related research

    Keywords: Wages; Mexico; Labor mobility; Labor supply; schooling; wage; dropouts; wage structure; wage adjustments; wage level; school graduates; benefits; returns to schooling; education of child; wage equations; education level; wage earners; unemployment insurance; wage rate; educational attainment;

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    Cited by:
    1. Pryymachenko, Yana & Fregert, Klas & Andersson, Fredrik N. G., 2011. "The Effect of Emigration on Unemployment: Evidence from the Central and Eastern European EU Member States," Working Papers 2011:32, Lund University, Department of Economics.
    2. Gordon H Hanson & Craig McIntosh, 2010. "The Great Mexican Emigration," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 798-810, November.
    3. Bayangos, Veronica & Jansen, Karel, 2011. "Remittances and Competitiveness: The Case of the Philippines," World Development, Elsevier, vol. 39(10), pages 1834-1846.
    4. Raymond Robertson, 2006. "Globalization and Mexican labor markets," Proceedings, Federal Reserve Bank of Dallas, pages 61-80.

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