Migration, Informality, and Unequal Exchange in the Context of the Mexico–US Regional Integration Process

Abstract

This paper analyzes the complex relationship between migration and informality in the context of the Mexico–US asymmetric and subordinated regional integration process under neoliberalism. It argues that one of the main drivers of contemporary Mexican migration is the uneven distribution of the informal sector—and more precisely, the industrial reserve army of labor—among both countries. In this regard, Mexico operates as a strategic zone of reserve and social reproduction of workforce to satisfy the growing labor demand in the United States through migration. This reveals that the reproduction of the reserve labor army is essentially transnational in nature. The main link between migration and informality from below is through remittances: they serve as a fundamental component for family reproduction and for the procreation of a transnational core labor force that exerts pressure on wages on both sides of the border. Within the framework of the dynamics of informality from above, a growing flow of skilled and highly skilled Mexican migration to the United States has been unleashed, accompanied by aggressive government policies to attract talent in synchronization with the strengthening of innovation and knowledge-intensive activities in that country. We conclude that a critical aspect of informality from above, which reinforces informality from below, is the dismantling and disarticulation of Mexico’s productive apparatus in order to rearticulate it to the United States economy through the installation of export-oriented platforms that operate under an enclave logic, with imported components and under tax exemption regimes.