Emigration and Wages in Source Countries: Evidence from Mexico

35 Pages Posted: 17 May 2006

See all articles by Prachi Mishra

Prachi Mishra

International Monetary Fund (IMF) - Research Department

Date Written: March 2006

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.

Keywords: Emigration, wages, wage inequality, Mexico

JEL Classification: F22, J31

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: https://ssrn.com/abstract=901877

Prachi Mishra (Contact Author)

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

700 19th Street NW
Washington, DC 20431
United States

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