Labor Market and Immigration Behavior of Middle-Aged and Elderly Mexicans

33 Pages Posted: 10 Jan 2010

See all articles by Emma Aguila

Emma Aguila

RAND Corporation; University of Southern California - Schaeffer Center for Health Policy and Economics

Julie M. Zissimopoulos

University of Southern California - Sol Price School of Public Policy; The RAND Corporation; University of Southern California - Schaeffer Center for Health Policy and Economics

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Date Written: December 31, 2009

Abstract

This study analyzed the retirement behavior of Mexicans with migration spells to the United States that returned to Mexico and non-migrants. The analysis is based on rich panel data from the Mexican Health and Aging Study (MHAS). Approximately 9 percent of MHAS respondents age 50 and older reported having lived or worked in the United States. These return migrants were more likely to be working at older ages than non-migrants. Consistent with much of the prior research on retirement in the United States and other developed countries, Mexican non-migrants and return migrants were responsive to institutional incentives. Both groups were more likely to retire if they had publicly provided health insurance and pensions. In addition, receipt of U.S. Social Security benefits increased retirement rates among return migrants. Return migrants were more likely to report being in poor health and this also increased the likelihood of retiring. The 2004 draft of an Agreement on Social Security would coordinate benefits across United States and Mexico boundaries to protect the benefits of persons who have worked in foreign countries. The agreement would likely increase the number of authorized and unauthorized Mexican workers and family member eligible for Social Security benefits. The responsiveness of current, older Mexican return migrants to pension benefits, suggests that an agreement would affect the retirement behavior of Mexican migrants.

JEL Classification: J14, J21, J61

Suggested Citation

Aguila, Emma and Zissimopoulos, Julie M., Labor Market and Immigration Behavior of Middle-Aged and Elderly Mexicans (December 31, 2009). RAND Working Paper Series WR- 726, Available at SSRN: https://ssrn.com/abstract=1533506 or http://dx.doi.org/10.2139/ssrn.1533506

Emma Aguila (Contact Author)

RAND Corporation ( email )

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University of Southern California - Schaeffer Center for Health Policy and Economics ( email )

635 Downey Way
Los Angeles, CA 90089-3333
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Julie M. Zissimopoulos

University of Southern California - Sol Price School of Public Policy ( email )

Los Angeles, CA 90089-0626
United States

The RAND Corporation ( email )

P.O. Box 2138
1776 Main Street
Santa Monica, CA 90407-2138
United States

University of Southern California - Schaeffer Center for Health Policy and Economics ( email )

635 Downey Way
Los Angeles, CA 90089-3333
United States

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