All of Scioteca
Communities & Collections By Issue Date Authors Titles Subjects Country / Region
Profiles
Our Authors
My Account
Login

Taking One for the Team: Shocks at Destination and Households' Supply of Migrants

We study how unemployment shocks in the United States affect Mexican households’ migration decisions. We emphasize households at origin (as op-posed to individuals) as the decisionmaking units for migration decisions. We show that negative changes in US labor market conditions, which are diffused by household members at destination to those at origin, lead to heterogeneous migration responses by Mexican households that have members abroad. We argue that this heterogeneous response is driven by the relative magnitudes of income and substitution effects after a negative employment shock in the United States. While the income effect dominates the substitution effect for poor households, the opposite holds for richer households. These results also inform the literature on selection patterns in international migration, which suggests a new channel through which negative shocks in the host economy negatively affect the skill composition of subsequent migrants.

Abstract

Description

Subject

Economía | Investigación socioeconómica | Trabajo y protección social

País / Región

América del norte

URI

https://scioteca.caf.com/handle/123456789/1082

Date

2017-08-9

Cite from this publication

Collections

6.1 Documentos de trabajo en investigación socioeconómica

Endorsement

Review

Supplemented By

Referenced By

Thumbnail Image

Files

Fajardo Gutiérrez and Larreguy (2017).pdf (1.33 MB)

Authors

Journal Title

Journal ISSN

Volume Title

Publisher

CAF

Related Items

Thumbnail Image
Slum Growth in Brazilian Cities

I study slum growth in contemporary urbanization processes by estimating a spatial equilibrium model with houses with and without basic water and sanitation services in...

Thumbnail Image
Does it Matter Where You Grow up? Childhood Exposure Effects in Latin America and the Caribbean

I study whether the observed differences in intergenerational educational mobility across regions in Latin America and the Caribbean are due to the sorting of families...

Thumbnail Image
Agricultural Distortions and International Migration

International migration is a recurrent phenomenon that has grown rapidly over the past two decades. This paper examines the role of agricultural distortions in shaping...

Thumbnail Image
Illegal Migration and Weather Shocks: Evidence from Rural Mexico

We study the effect of weather shocks on legal and illegal migration from rural Mexico to the US. First, we find that shocks in the...

Thumbnail Image
The Political Economy of Slum Growth: Evidence from Brazil

One-fourth of the world’s urban population lives in slums and the number of slum residents grew from 650 million in 1990 to 1 billion in...

Thumbnail Image
Determinants of Slum Formation: The Role of Local Politics and Policies

One-third of the developing world’s population lives in urban slums and the absolute number of slum residents grew from 650 million in 1990 to 863...