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Borrowing Constraints and the Dynamics of Return and Repeat Migration

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  • Goerlach, Joseph-Simon

    (Bocconi University)

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, as well as the amount saved while abroad. This paper combines Mexican and U.S. data to estimate a dynamic model of consumption, emigration and re-migration, 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

  • Goerlach, Joseph-Simon, 2021. "Borrowing Constraints and the Dynamics of Return and Repeat Migration," IZA Discussion Papers 14817, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14817
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    More about this item

    Keywords

    migration duration; repeat migration; borrowing constraints;
    All these keywords.

    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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