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Emigration, Labor Supply, and Earnings in Mexico

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  • Gordon H. Hanson

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 Emigration, Labor Supply, and Earnings in Mexico , Gordon H. Hanson. in Mexican Immigration to the United States , Borjas. 2007
Handle: RePEc:nbr:nberwo:11412

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  1. David Card, 1997. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," NBER Working Papers 5927, National Bureau of Economic Research, Inc.
  2. George J. Borjas, 1987. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
  3. Chinhui Juhn & Jim Airola, 2005. "Wage Inequality in Post-Reform Mexico," Working Papers, Department of Economics, University of Houston 2005-01, Department of Economics, University of Houston.
  4. Murray Leibbrandt & James Levinsohn & Justin McCrary, 2005. "Incomes in South Africa since the fall of Apartheid," Working Papers, Research Seminar in International Economics, University of Michigan 536, Research Seminar in International Economics, University of Michigan.
  5. Gordon H. Hanson & Antonio Spilimbergo, 1996. "Illegal Immigration, Border Enforcement, and Relative Wages: Evidence from Apprehensions at the U.S.-Mexico Border," IDB Publications 6798, Inter-American Development Bank.
  6. Pia M. Orrenius & Madeline Zavodny, 2001. "Self-selection among undocumented immigrants from Mexico," Working Paper, Federal Reserve Bank of Atlanta 2001-1, Federal Reserve Bank of Atlanta.
  7. repec:idb:brikps:publication-detail,7101.html?id=6686 is not listed on IDEAS
  8. Daniel Chiquiar & Gordon H. Hanson, 2005. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 113(2), pages 239-281, April.
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  23. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, July.
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  25. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U. S. Wage Inequality: Re-Assessing the Revisionists," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 2095, Harvard - Institute of Economic Research.
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