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Mexico–U.S. Immigration: Effects of Wages and Border Enforcement

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  • Rebecca Lessem

Abstract

In this article, I study how relative wages and border enforcement affect immigration from Mexico to the U.S. To do this, I develop a discrete choice dynamic programming model where people choose from a set of locations in both the U.S. and Mexico, while accounting for the location of one’s spouse when making decisions. I estimate the model using data on individual immigration decisions from the Mexican Migration Project. Counterfactuals show that a 10% increase in Mexican wages reduces migration rates and durations, overall decreasing the number of years spent in the U.S. by about 5%. A 50% increase in enforcement reduces migration rates and increases durations of stay in the U.S., and the overall effect is a 7% decrease in the number of years spent in the U.S.

Suggested Citation

  • Rebecca Lessem, 2018. "Mexico–U.S. Immigration: Effects of Wages and Border Enforcement," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(4), pages 2353-2388.
    • Handle: RePEc:oup:restud:v:85:y:2018:i:4:p:2353-2388.
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    File URL: http://hdl.handle.net/10.1093/restud/rdx078
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Joan Llull, 2021. "Immigration and Gender Differences in the Labor Market," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 174-203.
    2. Heepyung Cho, 2022. "Border enforcement and the sorting and commuting patterns of Hispanics," Journal of Regional Science, Wiley Blackwell, vol. 62(4), pages 938-960, September.
    3. Giacomo Battiston, 2022. "Rescue on Stage: Border Enforcement and Public Attention in the Mediterranean Sea," "Marco Fanno" Working Papers 0292, Dipartimento di Scienze Economiche "Marco Fanno".
    4. Bossavie,Laurent Loic Yves & Gorlach,Joseph-Simon & Ozden,Caglar & Wang,He, 2021. "Temporary Migration for Long-term Investment," Policy Research Working Paper Series 9740, The World Bank.
    5. Basu, Arnab K. & Chau, Nancy H. & Park, Brian, 2022. "Rethinking border enforcement, permanent and circular migration," Economic Modelling, Elsevier, vol. 108(C).
    6. Janeba, Eckhard & Schulz, Karl, 2023. "Nonlinear taxation and international mobility in general equilibrium," Journal of Public Economics, Elsevier, vol. 218(C).
    7. Chassamboulli, Andri & Peri, Giovanni, 2020. "The economic effect of immigration policies: analyzing and simulating the U.S. case," Journal of Economic Dynamics and Control, Elsevier, vol. 114(C).
    8. Kovak, Brian K. & Lessem, Rebecca, 2020. "How do U.S. visa policies affect unauthorized immigration?," Journal of Monetary Economics, Elsevier, vol. 113(C), pages 92-108.
    9. Bishop, Kelly C., 2020. "Comment on “How do U.S. visa policies affect unauthorized immigration”," Journal of Monetary Economics, Elsevier, vol. 113(C), pages 109-111.
    10. Lessem, Rebecca & Nakajima, Kayuna, 2019. "Immigrant wages and recessions: Evidence from undocumented Mexicans," European Economic Review, Elsevier, vol. 114(C), pages 92-115.
    11. Al Husein, N. & Wagner, N., 2020. "Determinants of intended return migration among refugees : A comparison of Syrian refugees in Germany and Turkey," ISS Working Papers - General Series 127798, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    12. Kara Ross Camarena & Sarah Claudy & Jijun Wang & Austin L Wright, 2020. "Political and environmental risks influence migration and human smuggling across the Mediterranean Sea," PLOS ONE, Public Library of Science, vol. 15(7), pages 1-16, July.
    13. Navarro, Salvador & Zhou, Jin, 2024. "Human capital and migration: A cautionary tale," Journal of Econometrics, Elsevier, vol. 243(1).

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    More about this item

    Keywords

    Immigration; Dynamics; Policy;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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