No abstract

The theoretical and empirical literature generally regards international migration as producing a cycle of dependency and stunted development in sending communities. Most migrants' earnings are spent on consumption; few funds are channeled into productive investment. We argue that this view is misleading because it ignores the conditions under which productive investment is likely to be possible and profitable. We analyze the determinants of migrants' savings and remittance decisions, using variables defined at the individual, household, community, and macroeconomic levels. We identify the conditions under which U.S. earnings are repatriated to Mexico as remittances and savings, and indicate the factors leading to their productive investment.

In this article we undertake a systematic analysis of why border enforcement backfired as a strategy of immigration control in the United States. We argue theoretically that border enforcement emerged as a policy response to a moral panic about the perceived threat of Latino immigration to the United States propounded by self-interested bureaucrats, politicians, and pundits who sought to mobilize political and material resources for their own benefit. The end result was a self-perpetuating cycle of rising enforcement and increased apprehensions that resulted in the militarization of the border in a way that was disconnected from the actual size of the undocumented flow. Using an instrumental variable approach, we show how border militarization affected the behavior of unauthorized migrants and border outcomes to transform undocumented Mexican migration from a circular flow of male workers going to three states into an eleven-million person population of settled families living in 50 states.

"Economic arguments, quantitative data, and ethnographic case studies are presented to counter popular misconceptions about international labor migration and its economic consequences in Mexico. The prevailing view is that Mexico-U.S. migration discourages autonomous economic growth within Mexico, at both the local and national levels, and that it promotes economic dependency. However, results estimated from a multiplier model suggest that the inflow of migradollars stimulates economic activity, both directly and indirectly, and that it leads to significantly higher levels of employment, investment, and income within specific communities and the nation as a whole. The annual arrival of around $2 billion migradollars generates economic activity that accounts for 10 percent of Mexico's output and 3 percent of its Gross Domestic Product."

This study uses a new source of data to assess the degree to which the Immigration Reform and Control Act (IRCA) deterred undocumented migration from Mexico to the United States. Data were collected from migrants interviewed in seven Mexican communities during the winters of 1987 through 1989, as well as from out-migrants from those communities who subsequently located in the United States. We conduct time-series experiments that examine changes in migrants' behavior before and after passage of the IRCA in 1986. We estimate trends in the probability of taking a first illegal trip, the probability of repeat migration, the probability of apprehension by the Border Patrol, the probability of using a border smuggler, and the costs of illegal border crossing. In none of these analyses could we detect any evidence that IRCA has significantly deterred undocumented migration from Mexico.