International Job Search: Mexicans in and Out of the US

39 Pages Posted: 23 May 2008

See all articles by Sílvio Rendon

Sílvio Rendon

Federal Reserve Banks - Federal Reserve Bank of Philadelphia

Alfredo Cuecuecha

Instituto Tecnológico Autónomo de México (ITAM)

Abstract

It is argued that migration from Mexico to the US and its corresponding 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

JEL Classification: F22, J64, E20

Suggested Citation

Rendon, Silvio and Cuecuecha, Alfredo, International Job Search: Mexicans in and Out of the US. IZA Working Paper No. 3219, Available at SSRN: https://ssrn.com/abstract=1136381 or http://dx.doi.org/10.2139/ssrn.1136381

Silvio Rendon (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

Alfredo Cuecuecha

Instituto Tecnológico Autónomo de México (ITAM) ( email )

Av. Camino a Sta. Teresa 930
Col. Héroes de Padierna
Mexico City, D.F. 01000, Federal District 01080
Mexico

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