Title: The effects of emigration on development and fiscal outcomes in Mexico

Authors: Raymundo M. Campos-Vazquez; Horacio Sobarzo

Addresses: El Colegio de México, Centro de Estudios Económicos, Camino al Ajusco 20, Col. Pedregal de Santa Teresa, DF 10740, Mexico ' El Colegio de México, Centro de Estudios Económicos, Camino al Ajusco 20, Col. Pedregal de Santa Teresa, DF 10740, Mexico

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.

Keywords: migration; human development; remittances; fiscal impact; Mexico; migrants; wages; poverty; human capital; poor households; household income; emigration; GDP; gross domestic product; fiscal revenue; economic impact; tax collection; economic growth.

DOI: 10.1504/IJMBS.2014.066310

International Journal of Migration and Border Studies, 2014 Vol.1 No.2, pp.190 - 216

Received: 22 Oct 2013
Accepted: 02 Jun 2014

Published online: 15 Dec 2014 *

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