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International Job Search: Mexicans In and Out of the US

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  • Rendon, Silvio

    ()
    (Stony Brook University)

  • Cuecuecha, Alfredo

    ()
    (ITAM, Mexico)

Abstract

It is argued that migration from Mexico to the US and its corresponding 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

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3219.

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Length: 39 pages
Date of creation: Dec 2007
Date of revision:
Publication status: published in: Review of Economics of the Household, 2010, 8 (1), 53-82
Handle: RePEc:iza:izadps:dp3219

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Keywords: job turnover; job search; international migration; savings; structural estimation;

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References

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Cited by:
  1. Adams, Richard H. Jr., 2005. "Remittances, household expenditure and investment in Guatemala," Policy Research Working Paper Series 3532, The World Bank.
  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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