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Migration and Financial Constraints: Evidence from Mexico

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  • Manuela Angelucci

    (University of Michigan)

Abstract

This paper shows that poor households’ entitlement to an exogenous, temporary, but guaranteed income stream increases Mexican migration to the United States, although this income is mainly consumed. Some households use the entitlement to this income stream as collateral to finance the migration. The new migrations come from previously constrained individuals and households and worsen migrant skills. In sum, financial constraints to international migration are binding for poor Mexicans, some of whom would like to migrate but cannot afford to. As growth and antipoverty and microfinance programs relax financial constraints for the poor, low-skilled Mexican migration to the United States will likely increase. © 2015 The President and Fellows of Harvard College and the Massachusetts Institute of Technology

Suggested Citation

  • Manuela Angelucci, 2015. "Migration and Financial Constraints: Evidence from Mexico," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 224-228, March.
    • Handle: RePEc:tpr:restat:v:97:y:2015:i:1:p:224-228
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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D00 - Microeconomics - - General - - - General

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