International Job Search: Mexicans in and out of the US

Type Journal Article - Review of Economics of the Household
Title International Job Search: Mexicans in and out of the US
Author(s)
Volume 8
Issue 1
Publication (Day/Month/Year) 2010
Page numbers 53-82
URL https://www.econstor.eu/bitstream/10419/35272/1/559459262.pdf
Abstract
It is argued that migration from Mexico to the US and its corresponding return migration are
determined by international wage differentials and preferences for origin. We use a model of
job search, savings and migration to show that job turnover is a crucial determinant of the
migration process. We estimate this model by Simulated Method of Moments (SMM) and find
that migration practically disappears if Mexico has American arrival rates while employed.
Doubling migration costs reduces migration rates in half, while subsidizing return migration in
$300 reduces migration rates of older migrants but increases migration rates of younger
migrants.

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