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Emigration and Wages in Source Countries; Evidence From Mexico

Author

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  • Prachi Mishra

Abstract

This paper empirically examines the effect on wages in Mexico of Mexican emigration to the United States, using data from the Mexican and United States censuses from 1970-2000. The main result in the paper is that emigration has a strong and positive effect on Mexican wages. There is also evidence for increasing wage inequality in Mexico due to emigration. Simple welfare calculations based on a labor demand-supply framework suggest that the aggregate welfare loss to Mexico due to emigration is small. However, there is a significant distributional impact between labor and other factors.

Suggested Citation

  • Prachi Mishra, 2006. "Emigration and Wages in Source Countries; Evidence From Mexico," IMF Working Papers 06/86, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:06/86
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. Yana Pryymachenko & Klas Fregert & Fredrik N. G. Andersson, 2013. "The effect of emigration on unemployment: Evidence from the Central and Eastern European EU member states," Economics Bulletin, AccessEcon, vol. 33(4), pages 2692-2697.
    4. Bayangos, Veronica & Jansen, Karel, 2011. "Remittances and Competitiveness: The Case of the Philippines," World Development, Elsevier, vol. 39(10), pages 1834-1846.
    5. Raymond Robertson, 2006. "Globalization and Mexican labor markets," Proceedings, Federal Reserve Bank of Dallas, pages 61-80.
    6. 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.

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