Emigration and wages in source countries: Evidence from Mexico

Labor Outflows and Labor Inflows in Puerto Rico

“…The national-level evidence indicated that the wage growth experienced by narrowly defined skill groups was strongly and inversely related to immigration-induced supply increases. This approach has now been applied to such diverse contexts as Canada (Aydemir and Borjas, 2007) and Mexico (Mishra, 2007) with similar conclusions: supply shifts induced by international migration lead to an opposite-signed change in the wage of competing workers. 21 In this section, I employ this methodological approach to investigate if the Puerto Rican wage structure responded to the labor inflows and outflows documented in the previous sections.…”

Multilateral resistance to migration

“…10 Endogeneity of some of the regressors, such as GDP at origin, goes beyond the effect exerted by multilateral resistance to migration: Mishra (2007) and Docquier, Ozden, and Peri (2010) show how wages at origin respond to migration whereas Borjas (2003) and Ottaviano and Peri (2010) among many others show how wages at destination respond to migration, and Bugamelli and Paternó (2009) analyze the relationship between migrants' remittances and current account reversals, and they conclude that remittances lower the probability of such a reversal; Anderson (2011) explores the implications for the estimation strategy when GDP is endogenous to migration flows.…”

Migrants' Remittances: Economic Lifeline but Fragile Support for Developing Countries. The Case of Belarus, Moldova and Ukraine (A Macroeconomic Perspective)

“…However, out-migration also has the direct effect of reducing the size of the labor force, and the ensuing upward pressure on local wages could in turn create a "substitution effect" away from leisure, with a consequent increase in labor supply for those living in areas with high migration rates. In the case of Mexico, for instance, Mishra (2007) estimates that emigration raised average wages by 8 percent between 1970 and 2000. In addition to the above factors, in households with recent migrants, the need to replace the income lost due to the migration of wage earners could reinforce the effect of higher market wages, resulting in an increase in the labor participation of those who remain.…”