Emigration and Wages in Source Countries: Evidence from Mexico
International Monetary Fund (IMF) - Research Department
IMF Working Paper No. 06/86
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.
Number of Pages in PDF File: 35
Keywords: Emigration, wages, wage inequality, Mexico
JEL Classification: F22, J31working papers series
Date posted: May 17, 2006
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