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Borrowing Constraints and the Dynamics of Return and Repeat Migration

Author

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  • Joseph-Simon Görlach

Abstract

As wages in migrant-sending countries catch up with those in destinations, migrants adjust on several margins, including their duration of stay, the number of migrations they undertake, and the amount saved while abroad. This paper combines Mexican and US data to estimate a dynamic model of consumption, emigration, and remigration, accounting for financial constraints. An increase in Mexican household earnings shortens migration duration but raises the number of trips per migrant. For lower-income migrants, a rise in Mexican wages leads to a more than proportional effect on consumption expenditure in Mexico, arising from repatriated savings.

Suggested Citation

  • Joseph-Simon Görlach, 2023. "Borrowing Constraints and the Dynamics of Return and Repeat Migration," Journal of Labor Economics, University of Chicago Press, vol. 41(1), pages 205-243.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/719687
    DOI: 10.1086/719687
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    Cited by:

    1. Adema, Joop & Aksoy, Cevat Giray & Giesing, Yvonne & Poutvaara, Panu, 2024. "The Effect of Conflict on Refugees' Return and Integration: Evidence from Ukraine," IZA Discussion Papers 16962, IZA Network @ LISER.
    2. Bossavie, Laurent & Görlach, Joseph-Simon & Özden, Çaglar & Wang, He, 2025. "Temporary migration for long-term investment," Journal of Development Economics, Elsevier, vol. 174(C).

    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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