IMF Working Papers

Emigration and Wages in Source Countries: Evidence From Mexico

By Prachi Mishra

March 1, 2006

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Format: Chicago

Prachi Mishra. "Emigration and Wages in Source Countries: Evidence From Mexico", IMF Working Papers 2006, 086 (2006), accessed June 25, 2025, https://0-doi-org.library.svsu.edu/10.5089/9781451863468.001

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Economic theory, Education, Labor, Labor force, Migration, Population and demographics, Supply shocks, Wages

Keywords: Emigrant supply shock, Emigration, Emigration loss, Global, Impact of emigration, Labor force, Mexico, Migration, Schooling group, Supply shocks, Wage impact, Wage inequality, Wage regression, Wages, Work experience, WP

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