Emigration and Wages in Source Countries: Evidence From Mexico

Prachi Mishra

No 2006/086, IMF Working Papers from International Monetary Fund

Abstract: 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.

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 (search for similar items in EconPapers)
Pages: 35
Date: 2006-03-01
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Citations: View citations in EconPapers (10)

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