Po 04.04.2011 | 16:30 | Applied Micro Research Seminar

“Migration Experience and Earnings in the Mexican Labor Market”

Po 04.04.2011

“Migration Experience and Earnings in the Mexican Labor Market”

Dr. Steffen Reinhold

MEA (Mannheim Research Institute of the Economics of Aging), University of Mannheim, Germany

Authors: Steffen Reinhold and Kevin Thom

 

Abstract: We present an empirical analysis of the relationship between U.S. migration experience and labor market earnings in Mexico. Using Mexican Migrant Project (MMP) data, we find a return to migration experience of about 2.7% per year. Our estimates are robust to the inclusion of controls for unobserved skill, and we thus believe that our estimates are not greatly influenced by standard forms of self-selection bias or the endogeneity of migration experience. A comparison with patterns in the Mexican Census suggests that our results are robust across data sets and are driven by a relationship between migration experience and wages, not hours worked. We also explore the plausibility of multiple mechanisms that might given rise to a return to migration experience. We find the most evidence for the theory that individuals are acquiring occupation-specific work experience in the United States. The return to a year of occupation-specific migration experience is estimated to be as high as 9.3% for some occupations.


Full Text: Migration Experience and Earnings in the Mexican Labor Market”