“Reversed Migration Trends and Local Labor Markets,” will be presented by Sarah Pearlman, associate professor of economics at Vassar College.
We estimate the effects of the unprecedented decline in Mexican net migration from 2006 to 2012 on labor markets in Mexico. We employ an instrumental variable strategy that isolates demand for Mexican labor in the Uited States, and relies on historical migration patterns. We find declining migration reduced the likelihood of employment among men and increased it for women. It also generated declines in self-employment and increases in salaried work. The results are driven by lower-educated groups, who are more directly affected by the labor supply shock and remittance decline. Our findings are relevant in a global context where migration restrictions are becoming more prevalent.
Sponsored by the Department of Economics Danforth-Lewis Speakers Series.