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Emigration and Wages in Source Countries: Evidence From Mexico
Author:
Ms. Prachi Mishra
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Series:
IMF Working Papers
Volume/Issue:
Volume 2006: Issue 086
Language:
English
Publication Date:
01 Mar 2006
DOI:
https://doi.org/10.5089/9781451863468.001
ISBN:
9781451863468
ISSN:
1018-5941
Pages:
35
Keywords:
WP; work experience; impact of emigration; wage inequality; Emigration; wages; Mexico; emigrant supply shock; schooling group; wage regression; emigration loss; wage impact; Migration; Supply shocks; Labor force; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund