Impact of migration on the short-term household labor supply

This study analyzed how the international migration of household heads affects the labor supply of household members who remain in their communities of origin. We used data from the National Survey of Occupation and Employment in Mexico, covering the first quarter of 2021 through the last quarter of 2024. We estimated the impact by observing whether the household experienced a migration event involving the household head or their partner in the four quarters following the first interview and by using an empirical strategy that leverages the structure of this short-term panel. The results indicate that a migration event increases hours worked, especially in the first quarters after the event. Moreover, migration has heterogeneous effects depending on the gender of migrants and household members who remain, age group, and household position. A migration event tends to increase the household's labor supply, particularly for men across all age groups. The exception is when the migrant is the man's spouse; in that case, his labor supply decreases. Meanwhile, the increase in women's labor force participation is concentrated among migrant partners. The results indicate a short-term increase, likely due to liquidity constraints that require an increase in labor supply to compensate for lost income. Regarding female migration, such an increase may also require a decrease in the partner's labor supply to replace work within the home.