Mexican Migration to the United States: Selection, Assignment, and Welfare

Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2019-10

44 Pages Posted: 19 Jul 2019 Last revised: 18 May 2020

See all articles by Michał Burzyński

Michał Burzyński

Luxembourg Institute of Socio-Economic Research (LISER)

Paweł Gola

BI Norwegian Business School

Date Written: July 15, 2019

Abstract

This paper analyzes how migration policy reforms shape migrants' self-selection and, through that, affect welfare and wage inequality in the sending and destination countries. First, we document that the distribution of wages among U.S. workers dominates the distribution of wages among Mexican immigrants in the hazard rate order. Second, we show that if this condition holds, then the standard assignment model predicts that the effciency and equality goals of migration policy are in conflict. Finally, we develop and calibrate a two-country extension of the assignment model with endogenous migration, and use it to quantify the implications of migration policy reforms.

Keywords: migration, matching, selection, welfare

JEL Classification: C68, C78, F22, J24

Suggested Citation

Burzyński, Michał and Gola, Paweł, Mexican Migration to the United States: Selection, Assignment, and Welfare (July 15, 2019). Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2019-10, Available at SSRN: https://ssrn.com/abstract=3422742 or http://dx.doi.org/10.2139/ssrn.3422742

Michał Burzyński (Contact Author)

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

Maison des Sciences Humaines
11, Porte des Science
Esch-sur-Alzette/Belval, L-4366
Luxembourg

HOME PAGE: http://https://sites.google.com/site/mpburzynski/

Paweł Gola

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442
Norway

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