SELF-SELECTION PATTERNS IN MEXICO-U.S. MIGRATION

The Review of Economics and Statistics, November 2010, 92(4): 811–821

David McKenzie and Hillel Rapoport

Abstract—This paper examines the role of migration networks in determining
self-selection patterns of Mexico-U.S. migration. A simple theoretical
framework shows the impact of networks on migration incentives
at different education levels and how this affects the composition of
migrant skills. Empirically, we find positive or education-neutral selection
in communities with weak migrant networks but negative self-selection in
communities with stronger networks. This is consistent with high migration
costs driving positive or intermediate self-selection, as advocated by
Chiquiar and Hanson (2005), and with negative self-selection being driven
by lower returns to education in the United States than in Mexico, as
advocated by Borjas (1987).