International Job Search: Mexicans in and out of the U.S

Silvio Rendon () and Alfredo Cuecuecha ()
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Alfredo Cuecuecha: Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM)

No 709, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: It is argued that migration from Mexico to the US and return migration are determined by international wage differentials and preferences for origin. We use a model of job search, savings and migration to show that job turnover is a crucial determinant of the migration process. We estimate this model by Simulated Method of Moments (SMM) and find that migration practically disappears if Mexico has American arrival rates while employed. Doubling migration costs reduces migration rates in half, while subsidizing return migration in $300 reduces migration rates of older migrants but increases migration rates of younger migrants.

Keywords: International Migration; Job Search; Job Turnover; Savings; Structural Estimation (search for similar items in EconPapers)
JEL-codes: F22 J64 E20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-dge, nep-lab and nep-mig
Date: 2007-12
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http://ftp.itam.mx/pub/academico/inves/cuecuecha/07-09.pdf First version, 2007 (application/pdf)

Related works:
Working Paper: International Job Search: Mexicans In and Out of the US (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:cie:wpaper:0709

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