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The Labor Market Consequences of North-to-South Migration

2024
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Paper Description

I investigate the impact of the arrival of individuals born in developed countries (North-to-South migration) on natives’ wages. Using Mexican Population Census data, I first characterize migration to Mexico and show that many foreign-born individuals from developed countries work, contrary to stereotypes. Then, I use an instrumental variable approach relying on enclaves and find that increasing the number of foreign-born individuals from developed countries decreases natives’ wages. I provide evidence suggesting that this is driven by the creation of low-paying jobs in industries relying on local consumption, and the substitution of natives for some white-collar jobs.

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