The Determinants of Mexican Labor Migration Strategies to the United States
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EMIGRANT OR SOJOURNER? THE DETERMINANTS OF MEXICAN LABOR MIGRATION STRATEGIES TO THE UNITED STATES A Dissertation Presented by FLORIAN K. KAUFMANN Submitted to the Graduate School of the University of Massachusetts Amherst in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY MAY 2008 Economics © Copyright by Florian K. Kaufmann 2008 All Rights Reserved EMIGRANT OR SOJOURNER? THE DETERMINANTS OF MEXICAN LABOR MIGRATION STRATEGIES TO THE UNITED STATES A Dissertation Presented by FLORIAN K. KAUFMANN Approved as to style and content by: __________________________________________ James K. Boyce, Chair __________________________________________ Peter Skott, Member __________________________________________ Melissa Gonzalez-Brenes, Member __________________________________________ Bernard Morzuch, Member ________________________________________ Diane Flaherty, Department Chair Economics ACKNOWLEDGMENTS This dissertation has benefited from many contributors. I was particularly fortunate in having the kind assistance of my committee. Jim Boyce has been an extraordinary advisor. While allowing me the greatest freedom to pursue my own research interests, his inspiring ideas guided me throughout my dissertation and graduate studies. His kindness, enthusiasm and support were essential in helping me to complete this dissertation. Melissa Gonzalez-Brenes has graciously committed a substantial amount of her time to guide and encourage me. Her support during my field research has been incisive. Peter Skott’s comments were critical to improve a key concept of this dissertation. His encouragement and guidance in developing my theoretical model was invaluable. Bernie Morzuch kindly agreed to join my committee despite his very busy schedule. He painstakingly helped to improve the final draft of this dissertation. I would also like to express my gratitude to Professor Samuel Bowles, who inspired my interest in microeconomics and assisted me during my initial research, and Professor Aline Sayer for advising me on factor analysis. My fellow graduate students have provided a warm and productive learning environment. I am thankful to Jen, Mathieu, Lynda and Mike, whose comments and proof-reading helped to improve this dissertation. I am indebted to Pablo, and Hwok Aun and his wife Jacqui for their repeated help and enrichment of my life in the U.S. Many other friends from EGSO, the GICF and the “Red Star team” have made my graduate life much better. I want to thank all of them. iv I am grateful for the friendship and hospitality that I received during my field research. I am especially indebted to Martin, Leonardo, Hilda, Pablo, Gorge Trujillo and his family, Jose-Luis, Silverio, Javier, Toribio, Alejandra, Soledad, Noe, Antonio, Gabriela, Bieto, Maelli, Don Arturo and Doña Margarita, who helped me to put my questionnaire into good “Mexican,” introduced me to my interviewees, loaned me their car, took me in and fed me, or helped me with various other things. I was humbled by the generosity of the people in my research communities and their willingness to share their time and life stories with me. I want to thank the Political Economy Research Institute and the Barkin family for their financial support. I am grateful to the Princeton University and the University of Guadalajara, the “Secretaría General del Consejo Nacional de Población” and the “Colegio de la Frontera Norte,” and Gordon Hanson for allowing me access to their databases. Finally, without my wife Katrin I would not have managed to pursue this Ph.D. With boundless love, she supported and encouraged me, and patiently endured the ups and downs of my graduate studies. I cannot thank my parents Paul and Irene enough for their unconditional acceptance and support. I praise the Lord for all these blessings and for orchestrating this dissertation. v ABSTRACT EMIGRANT OR SOJOURNER? THE DETERMINANTS OF MEXICAN LABOR MIGRATION STRATEGIES TO THE UNITED STATES MAY 2008 FLORIAN K. KAUFMANN M.Sc., UNIVERSITY OF KARLSRUHE Ph.D., UNIVERSITY OF MASSACHUSETTS AMHERST Directed by: Professor James K. Boyce This dissertation examines migration behavior with a focus on male labor migrants from Mexico to the United States. I develop the concept of migration intensity, defined as the degree to which a migrant shifts his attachment, association and engagement from the place of origin to the migration destination. Using data for male Mexican migrants in the years 1950 to 2005, I find strong complementarities among remittances, migration patterns, and investment decisions, allowing me to derive an Index of Migration Intensity (IMI). The IMI shows that male Mexican migrants use a continuum of labor migration strategies. Augmenting a conventional Harris-Todaro model, I develop a simultaneous model for the initial migration, return, repeat migration, and remittance decisions of migrant workers. This model can incorporate various migration strategies, including “circular migration,” “target earning,” and “emigration.” Modeling the effects of immigration policies, I find that stricter border enforcement has two consequences: an intended vi deterrence effect, and an unintended intensification effect whereby stricter border controls lead migrants to make fewer return trips, prolong total U.S. time, and reduce remittances. The impact of the latter on origin-country incomes may induce others to migrate as well. I then examine the determinants of Mexicans’ propensity to migrate illegally (extensive migration behavior) and their degree of socio-economic detachment from home (intensive migration behavior), using instrumental variables estimation with individual fixed effects. My findings support the hypotheses that stricter U.S. border enforcement leads to higher migration intensity, which in turn leads to a net increase in the volume of illegal Mexican migration. My results also indicate that reducing the U.S. – Mexican wage gap would curtail both the extent of illegal migration and migration intensity. The dissertation also investigates the significance of social networks in facilitating undocumented Mexican migration to the U.S. I argue that the importance of social network assistance arises from problems of asymmetric information. Drawing on secondary data sets as well as field research, I quantify the extent of social network assistance, disaggregated by type of assistance and helper. vii TABLE OF CONTENTS Page ACKNOWLEDGMENTS........................................................................... iv ABSTRACT.................................................................................................. vi TABLE OF CONTENTS .......................................................................... viii LIST OF TABLES...................................................................................... xii LIST OF FIGURES................................................................................... xiv CHAPTER 1. INTRODUCTION ...................................................................................1 1.1 International Migration and Its Importance to Sending and Receiving Countries.............................................................................................................. 1 1.2 Mexico – U.S. Migration: From Temporary to Permanent Mass Migration? ........................................................................................................... 4 1.3 Research Question, Methodology, and Plan of Dissertation............................ 5 2. SOCIAL NETWORK ASSISTANCE IN MEXICO – U.S. MIGRATION...........................................................................................8 2.1 Introduction.......................................................................................................... 8 2.2 Literature Review and Motivation................................................................... 10 2.2.1 Social Network Assistance in Migration: Types of Assistance ................. 11 2.2.2 Social Network Assistance in Migration: Empirical Findings................... 13 2.2.3 Conclusion and Motivation of Research.................................................... 14 2.3 The Mexican – U.S. Migration Process: A Detailed Micro Perspective ....... 16 2.3.1 From Decision Making to First U.S. Employment: Six Milestones .......... 18 2.3.2 Conclusion and Hypotheses on Social Network Assistance...................... 23 viii 2.4 Data ..................................................................................................................... 24 2.4.1 Original Data Set........................................................................................ 25 2.4.2 Secondary Data Sets................................................................................... 26 2.5 Social Network Assistance in Mexican Migration: Empirical Findings....... 28 2.5.1 Original Data Set........................................................................................ 28 2.5.2 Secondary Data Sets................................................................................... 34 2.5.3 Comparison of Original Data Set, Secondary Data Sets, and Other Studies ........................................................................................................ 39 2.6 Summary and Conclusions ............................................................................... 40 3. EMIGRANT OR SOJOURNER? MIGRATION INTENSITY AND ITS DETERMINANTS ...............................................................43 3.1 Introduction.......................................................................................................