Emigration and Wages in Source Countries: Evidence from Mexico

Mishra, Prachi

Abstract

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Emigration and Wages in Source Countries: Evidence from Mexico

Prachi Mishra

International Monetary Fund (IMF) - Research Department

March 2006

IMF Working Paper No. 06/86

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.

Number of Pages in PDF File: 35

Keywords: Emigration, wages, wage inequality, Mexico

JEL Classification: F22, J31

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Date posted: May 17, 2006

Suggested Citation

Mishra, Prachi, Emigration and Wages in Source Countries: Evidence from Mexico (March 2006). IMF Working Paper, Vol. , pp. 1-35, 2006. Available at SSRN: http://ssrn.com/abstract=901877

Contact Information

Prachi Mishra (Contact Author)

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States