International Import Competition and the Decision to Migrate: Evidence from Mexico

Kaveh Majlesi and Gaia Narciso

No 11346, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We analyze the effects of the increase in China's import competition on Mexican domestic and international migration. We exploit the variation in exposure to competition from China, following its accession to the WTO in 2001, across Mexican municipalities and estimate the effect of international competition on the individual decision to migrate. Controlling for individual and municipality features, we find that individuals living in municipalities more exposed to Chinese import competition are more likely to migrate to other municipalities within Mexico, while a negative effect is found on the decision to migrate to the US. In particular, we find that Chinese import competition reduces migrants' negative self- selection: the rising international competition lowers the likelihood of low-educated, low-income people to migrate to the US, by making them more financially constrained. We do not find any evidence that changes in demand for Mexican workers in the US drive our results.

Keywords: international migration; domestic migration; import competition; negative self-selection (search for similar items in EconPapers)
JEL-codes: F14 F16 F22 O15 R23 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2018-02
New Economics Papers: this item is included in nep-dev, nep-int and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Published - published in: Journal of Development Economics, 2018, 132, 75-87

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Related works:
Journal Article: International import competition and the decision to migrate: Evidence from Mexico (2018)
Working Paper: International Import Competition and the Decision to Migrate: Evidence from Mexico (2015)
Working Paper: International Import Competition and the Decision to Migrate: Evidence from Mexico (2015)
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