The effects of emigration on development and fiscal outcomes in Mexico. (16th December 2014)

• Record Type: Journal Article
• Authors: Campos-Vazquez, Raymundo M.; Sobarzo, Horacio
• Is Part Of: International journal of migration and border studies. Volume 1:Number 2(2014)
• Page Start: 190
• Page End: 216
• Publication Date: 2014-12-16
• Subjects: migration -- human development -- remittances -- fiscal impact -- Mexico; Emigration and immigration -- Periodicals; Border security -- Periodicals; 304.805
• Languages: English
• ISSNs: 1755-2419

Abstract

This paper has two separate goals. First, we review the empirical evidence on the effects of migration on development in Mexico. We examine the types of migrants who leave and return to Mexico, the effects of emigration on wages, and the effects of remittances on poverty and human capital accumulation. Second, we attempt to estimate the fiscal impact of emigration in Mexico. Previous literature generally associates emigration and remittances with positive development outcomes in the areas of poverty and health. Remittances are an important source of income for poor households and for high-migrant states. We find that emigration has a positive impact on GDP and fiscal revenue. However, we calculate that there would have been similar effects had emigration not occurred. Emigration has thus not had a significant economic impact on tax collection.