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Emigration, Labor Supply, and Earnings in Mexico

In: Mexican Immigration to the United States

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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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Suggested Citation

  • Gordon H. Hanson, 2007. "Emigration, Labor Supply, and Earnings in Mexico," NBER Chapters,in: Mexican Immigration to the United States, pages 289-328 National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:0097
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kristin F. 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.
    2. Isabel Ruiz & Elias Shukralla & Carlos Vargas-Silva, 2009. "Remittances, Institutions and Growth: A Semiparametric Study," International Economic Journal, Taylor & Francis Journals, vol. 23(1), pages 111-119.
    3. 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.
    4. Milo Bianchi, 2013. "Immigration Policy and Self-Selecting Migrants," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(1), pages 1-23, February.
    5. 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.
    6. Milo Bianchi, 2013. "Immigration Policy and Self-Selecting Migrants," Post-Print hal-01629740, HAL.
    7. 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.
    8. Cardoso-Vargas, Carlos, 2015. "Potencial de mercado y desigualdad salarial, evidencia para México
      [Market potential and wage inequality, evidence for Mexico]
      ," MPRA Paper 68424, University Library of Munich, Germany, revised 05 Nov 2015.
    9. Francisco L. Rivera-Batiz, 2007. "How Do Migrants from Latin America and the Caribbean Fare in the US Labour Market?," The World Economy, Wiley Blackwell, vol. 30(9), pages 1399-1429, September.
    10. Wadim Strielkowski & Petr Filipec & Miroslav Štefánik & Karolina Kowalska, 2013. "Outward Labour Migration in the Czech Republic, Poland and Slovakia after the EU Enlargement in 2004," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 7(1), pages 042-054, March.
    11. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, Elsevier.
    12. Maurice Kugler, 2006. "Migrant Remittances, Human Capital Formation and Job Creation Externalities in Colombia," BORRADORES DE ECONOMIA 003218, BANCO DE LA REPÚBLICA.
    13. Huang, Cheng & Soldo, Beth J. & Elo, Irma T., 2011. "Do early-life conditions predict functional health status in adulthood? The case of Mexico," Social Science & Medicine, Elsevier, vol. 72(1), pages 100-107, January.
    14. Richard B. Freeman, 2006. "People Flows in Globalization," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 145-170, Spring.
    15. Cardoso-Vargas, Carlos, 2015. "Potencial de mercado y desigualdad salarial, evidencia para México
      [Market potential and wage inequality, evidence for Mexico]
      ," MPRA Paper 69696, University Library of Munich, Germany, revised 05 Nov 2015.
    16. Katarzyna Budnik, 2008. "Search Equilibrium with Migration: the Case of Poland," NBP Working Papers 45, Narodowy Bank Polski, Economic Research Department.
    17. Blau, Francine D. & Kahn, Lawrence M., 2012. "Immigration and the Distribution of Incomes," IZA Discussion Papers 6921, Institute for the Study of Labor (IZA).
    18. Milo Bianchi, 2008. "Immigration policy and self-selecting migrants," Working Papers halshs-00587710, HAL.
    19. Finkelstein Shapiro, Alan & Mandelman, Federico S., 2016. "Remittances, entrepreneurship, and employment dynamics over the business cycle," Journal of International Economics, Elsevier, vol. 103(C), pages 184-199.
    20. 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.
    21. repec:dau:papers:123456789/5377 is not listed on IDEAS
    22. Gagnon, Jason, 2010. "“Stay with Us”? The Impact of Emigration on Wages in Honduras," Proceedings of the German Development Economics Conference, Hannover 2010 57, Verein für Socialpolitik, Research Committee Development Economics.
    23. Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, Elsevier.
    24. Jeffrey A. Edwards & Jennis J. Biser, 2011. "The interactive effect of remittances and civil liberties on investment and consumption," International Journal of Development Issues, Emerald Group Publishing, vol. 10(1), pages 20-33, April.

    More about this item

    JEL classification:

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

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