Monday, February 4th 2019 –  13:00 – 14:00

Avec le soutient du projet ANR JASI (ANR-16-FASI-0001)

Maison des Sciences Économiques, Room S3

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 27, 83 or 47

Michal BURZYNSKI

(LISER)

with Pawel Gola (BI Norwegian Business School) 

Mexican Migration to the US: Selection, Sorting and Matching

Abstract: We develop a model of international migration in which heterogeneous workers self-select into domestic and foreign labor markets, and match with productivity- differentiated firms operating on the international goods market. Due to worker-firm matching, low- and high-skilled workers are complements. In a numerical exercise, we quantify the effects of Mexican migration to the US on the distributions of wages in both countries. We find that Mexican migration depresses the wages of below- median US workers. However, their losses are small, and can be fully compensated with a transfer financed by a lump-sum tax on Mexican immigrants of about a dollar per day.