Joseph-Simon Goerlach (Università Bocconi)
29 November 2019 @ 12:00 - 13:15
“Borrowing Constraints, Migrant Selection, and the Dynamics of Return and Repeat Migration”
jointly organised by Centro Studi Luca d’Agliano and Collegio Carlo Alberto within the Migration Observatory
Abstract: Higher earnings in a migrant’s country of origin change migration dynamics: they increase the opportunity cost of migration, but also relax financial constraints. To evaluate the effects on return and repeat migration, I formulate a dynamic model of consumption and location choices. Estimation uses both Mexican and U.S. data sources, and exploits a randomized experiment for identification. I find that an increase in Mexican household earnings shortens migration duration, but raises the average number of migrations. For low-income households, a rise in earnings leads to a more than proportional effect on consumption expenditure in Mexico, arising from repatriated savings.