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Abstract

In this paper, I examine changes in labor supply and earnings across regions of Mexico during the 1990s. I focus the analysis on individuals born in states with either high-exposure or low-exposure to emigration, as measured by historical data on state migration to the United States. During the 1990s, rates of external migration and interval migration were higher among individuals born in high-migration states. Consistent with positive selection of emigrants in terms of observable skill, emigration rates appear to be highest among individuals with earnings in the top half of the wage distribution. Controlling for regional differences in observable characteristics and for initial regional differences in earnings, the distribution of male earnings in high-migration states shifted to the right relative to low-migration states. Over the decade, average hourly earnings in high-migration states rose relative to low-migration states by 6-9%.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11412.

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Date of creation: Jun 2005
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Publication status: published as Gordon H. Hanson. "Emigration, Labor Supply, and Earnings in Mexico ," in George J. Borjas, editor, "Mexican Immigration to the United States" University of Chicago Press (2007)
Handle: RePEc:nbr:nberwo:11412

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Find related papers by JEL classification:

• F2 - International Economics - - International Factor Movements and International Business
• J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

This paper has been announced in the following NEP Reports:

• NEP-ALL-2005-06-14 (All new papers)
• NEP-LAB-2005-06-14 (Labour Economics)

References

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1. Jorge Durand & William Kandel & Emilio Parrado & Douglas Massey, 1996. "International migration and development in mexican communities," Demography, Springer, vol. 33(2), pages 249-264, May.
2. David Card, 1996. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Working Papers 747, Princeton University, Department of Economics, Industrial Relations Section..
   
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3. Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S20-43, July.
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10. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
11. Robertson, Raymond, 2004. "Relative prices and wage inequality: evidence from Mexico," Journal of International Economics, Elsevier, vol. 64(2), pages 387-409, December.
12. George J. Borjas & Richard B. Friedman & Lawrence F. Katz, 1997. "How Much Do Immigration and Trade Affect Labor Market Outcomes?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 1-90.
13. Airola, Jim & Juhn, Chinhui, 2005. "Wage Inequality in Post-Reform Mexico," IZA Discussion Papers 1525, Institute for the Study of Labor (IZA).
    
    • Chinhui Juhn & Jim Airola, 2005. "Wage Inequality in Post-Reform Mexico," Working Papers 2005-01, Department of Economics, University of Houston.
14. Murray Leibbrandt & James Levinsohn & Justin McCrary, 2005. "Incomes in South Africa since the fall of Apartheid," Working Papers 536, Research Seminar in International Economics, University of Michigan.
    
    • Murray Leibbrandt & James Levinsohn & Justin McCrary, 2005. "Incomes in South Africa Since the Fall of Apartheid," NBER Working Papers 11384, National Bureau of Economic Research, Inc.
15. Chiquiar, Daniel, 2005. "Why Mexico's regional income convergence broke down," Journal of Development Economics, Elsevier, vol. 77(1), pages 257-275, June.
16. Gordon H. Hanson, 2003. "What Has Happened to Wages in Mexico since NAFTA?," NBER Working Papers 9563, National Bureau of Economic Research, Inc.
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    • Daniel Chiquiar & Gordon H. Hanson, 2002. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," NBER Working Papers 9242, National Bureau of Economic Research, Inc.
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    • George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
22. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
23. Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October.
24. Gordon H. Hanson & Ann Harrison, 1995. "Trade, Technology, and Wage Inequality," NBER Working Papers 5110, National Bureau of Economic Research, Inc.
    
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Citations

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Cited by:

1. Milo Bianchi, 2008. "Immigration policy and self-selecting migrants," Working Papers halshs-00587710, HAL.
2. Milo Bianchi, 2012. "Immigration Policy and Self-Selecting Migrants," Working Papers halshs-00670037, HAL.
   
   • Bianchi, Milo, 2006. "Immigration Policy and Self-Selecting Migrants," Working Paper Series in Economics and Finance 627, Stockholm School of Economics, revised 02 Nov 2006.
   • Milo Bianchi, 2008. "Immigration policy and self-selecting migrants," PSE Working Papers halshs-00587710, HAL.
3. Kristin Butcher & Anne Morrison Piehl, 2005. "Why are immigrants' incarceration rates so low? evidence on selective immigration, deterrence, and deportation," Working Paper Series WP-05-19, Federal Reserve Bank of Chicago.
   
   • Kristin F. Butcher & Anne Morrison Piehl, 2007. "Why are Immigrants' Incarceration Rates so Low? Evidence on Selective Immigration, Deterrence, and Deportation," NBER Working Papers 13229, National Bureau of Economic Research, Inc.
   • Kristin F. Butcher & Anne Morrison Piehl, 2006. "Why Are Immigrants' Incarceration Rates So Low? Evidence on Selective Immigration, Deterrence, and Deportation," Departmental Working Papers 200605, Rutgers University, Department of Economics.
4. Richard B. Freeman, 2006. "People Flows in Globalization," NBER Working Papers 12315, National Bureau of Economic Research, Inc.
   
   • Richard B. Freeman, 2006. "People Flows in Globalization," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 145-170, Spring.
5. Gordon H. Hanson & Craig McIntosh, 2007. "The Great Mexican Emigration," NBER Working Papers 13675, National Bureau of Economic Research, Inc.
   
   • 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.
6. Abdurrahman Aydemir & George J. Borjas, 2006. "A Comparative Analysis of the Labor Market Impact of International Migration: Canada, Mexico, and the United States," NBER Working Papers 12327, National Bureau of Economic Research, Inc.
7. George J. Borjas & Rachel M. Friedberg, 2009. "Recent Trends in the Earnings of New Immigrants to the United States," NBER Working Papers 15406, National Bureau of Economic Research, Inc.
   
   • George J. Borjas & Rachel M. Friedberg, 2009. "Recent Trends in the Earnings of New Immigrants to the United States," Working Papers 2009-13, Brown University, Department of Economics.
8. Maurice Kugler, . "Migrant Remittances, Human Capital Formation and Job Creation Externalities in Colombia," Borradores de Economia 370, Banco de la Republica de Colombia.
   
   • Maurice Kugler, 2006. "Migrant Remittances, Human Capital Formation and Job Creation Externalities in Colombia," BORRADORES DE ECONOMIA 003218, BANCO DE LA REPÚBLICA.
9. Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," NBER Working Papers 12141, National Bureau of Economic Research, Inc.
   
   • Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 869-924, December.
10. Christian Dustmann & Albrecht Glitz, 2011. "Migration and Education," CReAM Discussion Paper Series 1105, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    
    • Christian Dustmann & Albrecht Glitz, 2011. "Migration and Education," Norface Discussion Paper Series 2011011, Norface Research Programme on Migration, Department of Economics, University College London.
11. Bianchi, Milo, 2013. "Immigration Policy and Self-Selecting Migrants," Open Access publications from Université Paris-Dauphine urn:hdl:123456789/5377, Université Paris-Dauphine.

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