Emigration and Wages in Source Countries: Evidence from Mexico
35 Pages Posted: 17 May 2006
Date Written: March 2006
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: Emigration, wages, wage inequality, Mexico
JEL Classification: F22, J31
Suggested Citation: Suggested Citation