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Intergenerational Transmission of Abilities and Self Selection of Mexican Immigrants

  • Vincenzo Caponi

    ()

    (Department of Economics, Ryerson University, Toronto, Canada)

This paper presents an intergenerational self selection model of migration and education that is capable of explaining the evolution of earnings and education across three generations of immigrants. By structurally estimating the model it is possible to quantify the human capital level of Mexicans in light of the self-sacrifice made by the first generation of Mexican immigrants. The results suggest that there is a significant one time loss of human capital faced by immigrants upon migration that is not transmitted to their children. Also parents with larger amounts of human capital tend to migrate more and tend to choose to remain high school educated. However, given the better educational opportunities offered in the US, they migrate with the expectation of their children becoming college educated. Therefore, measures that rely on the earnings performance and educational attainment of immigrants underestimate the amount of human capital they bring into the host country.

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File URL: http://economics.ryerson.ca/workingpapers/wp002.pdf
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Paper provided by Ryerson University, Department of Economics in its series Working Papers with number 002.

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Length: 62 pages
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:rye:wpaper:wp002
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  1. Hendricks, Lutz A., 2001. "The Economic Performance of Immigrants: A Theory of Assortative Matching," Staff General Research Papers 11931, Iowa State University, Department of Economics.
  2. repec:att:wimass:9722 is not listed on IDEAS
  3. George J. Borjas, 1987. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
  4. David Laibson & Andrea Repetto & Jeremy Tobacman, 2007. "Estimating Discount Functions with Consumption Choices over the Lifecycle," Documentos de Trabajo 236, Centro de Economía Aplicada, Universidad de Chile.
  5. McFadden, Daniel, 1989. "A Method of Simulated Moments for Estimation of Discrete Response Models without Numerical Integration," Econometrica, Econometric Society, vol. 57(5), pages 995-1026, September.
  6. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
  7. David Card, 2005. "Is the New Immigration Really so Bad?," Economic Journal, Royal Economic Society, vol. 115(507), pages F300-F323, November.
  8. Gordon H. Hanson & Antonio Spilimbergo, 1996. "Illegal Immigration, Border Enforcement, and Relative Wages: Evidence from Apprehensions at the U.S.-Mexico Border," Research Department Publications 4036, Inter-American Development Bank, Research Department.
  9. Heckman, James J & Sedlacek, Guilherme L, 1990. "Self-selection and the Distribution of Hourly Wages," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages S329-63, January.
  10. Brian Duncan & Stephen J. Trejo, 2005. "Ethnic Identification, Intermarriage, and Unmeasured Progress by Mexican Americans," NBER Working Papers 11423, National Bureau of Economic Research, Inc.
  11. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June.
  12. Vincenzo CAPONI, 2010. "Heterogeneous Human Capital and Migration: Who Migrates from Mexico to the us?," Annales d'Economie et de Statistique, ENSAE, issue 97-98, pages 207-234.
  13. Adalbert Mayer, 2004. "Education, Self-Selection and Intergenerational Transmission of Abilities," 2004 Meeting Papers 107, Society for Economic Dynamics.
  14. Gourinchas, Pierre-Olivier & Parker, Jonathan A, 2000. "Consumption Over the Life-Cycle," CEPR Discussion Papers 2345, C.E.P.R. Discussion Papers.
  15. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
  16. Heckman, James & Scheinkman, Jose, 1987. "The Importance of Bundling in a Gorman-Lancaster Model of Earnings," Review of Economic Studies, Wiley Blackwell, vol. 54(2), pages 243-55, April.
  17. Daniel Chiquiar & Gordon H. Hanson, 2002. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," NBER Working Papers 9242, National Bureau of Economic Research, Inc.
  18. Borjas, George J., 1996. "The earnings of Mexican immigrants in the United States," Journal of Development Economics, Elsevier, vol. 51(1), pages 69-98, October.
  19. Robert J. Willis & Sherwin Rosen, 1978. "Education and Self-Selection," NBER Working Papers 0249, National Bureau of Economic Research, Inc.
  20. Kurokawa, Yoshinori, 2006. "Skill Intensity Reversal and the Rising Skill Premium: Evidence from the U.S. and Mexico," MPRA Paper 14013, University Library of Munich, Germany.
  21. Chiara Binelli & Orazio Attanasio, 2010. "Mexico in the 1990s: the Main Cross-Sectional Facts," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 238-264, January.
  22. Chiara Binelli, 2009. "The Demand-Supply-Demand Twist: How the Wage Structure Got More Convex," Working Paper Series 48_09, The Rimini Centre for Economic Analysis, revised Jan 2009.
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