Advanced

International Import Competition and the Decision to Migrate : Evidence from Mexico

Majlesi, Kaveh LU and Narciso, Gaia (2017) In Journal of Development of Economics
Abstract
We analyze the effects of the increase in China’s import competition on Mexican domestic and international migration. We exploit the variation in exposure to competition from China, following its accession to the WTO in 2001, across Mexican municipalities and estimate the effect of international competition on the individual decision to migrate. Controlling for individual and municipality features, we find that individuals living in municipalities more exposed to Chinese import competition are more likely to migrate to other municipalities within Mexico, while a negative effect is found on the decision to migrate to the US. In particular, we find that Chinese import competition reduces migrants’ negative self-selection: the rising... (More)
We analyze the effects of the increase in China’s import competition on Mexican domestic and international migration. We exploit the variation in exposure to competition from China, following its accession to the WTO in 2001, across Mexican municipalities and estimate the effect of international competition on the individual decision to migrate. Controlling for individual and municipality features, we find that individuals living in municipalities more exposed to Chinese import competition are more likely to migrate to other municipalities within Mexico, while a negative effect is found on the decision to migrate to the US. In particular, we find that Chinese import competition reduces migrants’ negative self-selection: the rising international competition lowers the likelihood of low-educated, low-income people to migrate to the US, by making them more financially constrained. We do not find any evidence that changes in demand for Mexican workers in the US drive our results. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
in press
subject
in
Journal of Development of Economics
publisher
Elsevier
ISSN
0304-3878
language
English
LU publication?
yes
id
1f8724c8-28b3-49b0-98a1-36c7267cb81a
date added to LUP
2017-12-15 10:26:38
date last changed
2017-12-19 09:18:15
@article{1f8724c8-28b3-49b0-98a1-36c7267cb81a,
  abstract     = {We analyze the effects of the increase in China’s import competition on Mexican domestic and international migration. We exploit the variation in exposure to competition from China, following its accession to the WTO in 2001, across Mexican municipalities and estimate the effect of international competition on the individual decision to migrate. Controlling for individual and municipality features, we find that individuals living in municipalities more exposed to Chinese import competition are more likely to migrate to other municipalities within Mexico, while a negative effect is found on the decision to migrate to the US. In particular, we find that Chinese import competition reduces migrants’ negative self-selection: the rising international competition lowers the likelihood of low-educated, low-income people to migrate to the US, by making them more financially constrained. We do not find any evidence that changes in demand for Mexican workers in the US drive our results.},
  author       = {Majlesi, Kaveh and Narciso, Gaia},
  issn         = {0304-3878},
  language     = {eng},
  publisher    = {Elsevier},
  series       = {Journal of Development of Economics},
  title        = {International Import Competition and the Decision to Migrate : Evidence from Mexico},
  year         = {2017},
}