Do minimum wages help explain declining Mexico-U.S. migration?

• DOI: 10.33679/rmi.v1i1.2326
• Publication Date: 2022-02-21T23:24:00Z
• Authors: Alfredo Cuecuecha; Norma Fuentes-May...; Darryl McLeod
• Keywords: Minimum Wage; Wage Inequality; Real wages

This paper finds that minimumwagesof the United States and Mexicomeasured carefully in Purchasing Power Parity (PPP) help explain well-documented post-2010 fall Mexico-U.S.migration. Declining inequality also plays a role since purchasing power of minimum wage increased relative to average Mexico. Using time-series data,we find two positive partial correlations between wages net migration: one driven by differentials countries other However, these results are found be mediated through migrantsocial networks. Though classic migration driver,this is first explore full minimum-average wagenexus. One clear policy implication maintaining real helps reducemigration.An in-depth analysis needed demonstrate causality correlations.