Michael A. Quinn

Relative Deprivation, Wage Differentials and Mexican Migration

This paper constructs and tests a model that incorporates relative deprivation into the migration decision. Relatively deprived individuals view their situations as less than a community standard. Another innovation of this paper is the utilization of a cluster approach to wage differentials. This cluster method takes account of individual characteristics while avoiding the severe multicollinearity problems inherent in the standard wage equation approach. Using data from the Mexican Migration Project, relative deprivation is found to be a significant motivating factor in domestic migration decisions. The results also suggest that Mexico-US migration may be increasing relative deprivation in Mexican communities. For policymakers, the results indicate that policies attempting to slow domestic rural-to-urban migration must address both relative and absolute outcomes in communities. Investments in communities that raise aggregate incomes, but increase relative deprivation, could result in an increase in migration out of the community, not in a decrease as intended.

The importance of education-occupation matching in migration decisions

In this article, we present and test a model that incorporates education-occupation matching into the migration decision. The literature on education-occupation matching shows that earnings are affected by how individuals’ education matches that required by their occupation. Accordingly, individuals with more schooling than required by their occupation have an additional incentive to migrate: the increase in earnings that occurs with a more beneficial education-occupation match. Using data from Mexico, we found statistical support for the importance of education-occupation matching in migration decisions. Education-occupation matching provides a plausible explanation for the mixed findings in the literature on the relationship between educational attainment and migration.

Estimating the Impact of Migration and Remittances on Agricultural Technology

The rapid growth of international migration and remittances has led to a wealth of research examining these trends. One of these lines of research attempts to determine the relationship between migration, remittances and the adoption of “Green Revolution” high yield variety (HYV) seeds. This literature proposes that migration and remittances may increase HYV use by reducing household risk and credit constraints. Given the large scale of both migration and remittances, getting an accurate measurement of these impacts is crucial to designing and implementing policies in rural areas. This paper examines the relationship between migration, remittances and agricultural technology. The credit and risk hypotheses are tested using data from the Mexican Migration Project. The main focus of the paper is examining the issue of endogeneity with respect to migration and remittances. When the probit approach is tested, evidence of endogeneity bias with respect to migration and remittances is found. The risk and credit hypotheses are then tested with two-stage and three-stage analyses, in order to address the problem of endogeneity. The results are found to be significantly different when methodologies are employed to deal with endogeneity; suggesting this is an issue that needs to be addressed. Overall, the results find some evidence to support both the credit and risk hypotheses; although the results for the risk hypothesis are more mixed.

Coyotes, Migration Duration, and Remittances

The migration of Mexican immigrants to the U.S. is one of the largest bilateral migration flows in the world and remittances from these immigrants represent a crucial source of income for Mexican households. As the United States tightens controls on illegal migration, this may impact both migration durations and remittances. Tighter borders increase crossing costs, often because migrants need to pay smugglers (coyotes). Using data from the Mexican Migration Project, we find that higher crossing costs increase the probability of remitting, the remittance rate and the duration of stay as undocumented workers pay off the crossing debt. If immigrants did not incur these crossing debts then more of their earnings could be spent in the United States or by their households in Mexico on productive activities and durations in the U.S. might be lessened at the margin. This suggests some potential gain to both the U.S. and Mexican economies through expanding guest worker programs and consequently reducing the hiring of coyotes.

What Have Firms Been Doing? Exploring What KLD Data Report About Firms’ Corporate Social Performance in the Period 2000-2010

With the blossoming of research on corporate social performance (CSP), the data produced by Kinder, Lydenberg, Domini (KLD) have become the standard to measure firms’ social and stakeholder actions. However, to date, only a few studies have focused on examining the data directly, and have done so largely in terms of validating the concepts and methods in the data set’s construction. The present study seeks to complement these efforts by contributing knowledge about what the KLD data report on firms’ actions toward primary and secondary stakeholders, and the dimensions of CSP that firms generally engage in, together or sequentially. With data on 3,073 firms over the period 2000-2010, results show that firms expend more resources on garnering strengths in primary stakeholder dimensions, although this trend is sharply deteriorating to the benefit of secondary stakeholders—notably the natural environment. Results also show that firms generally approach CSP with a mixed behavior, with strengths and concerns in the same dimensions, especially as it pertains to secondary stakeholders. These are the same dimensions in which firms show the longer, more intrinsic commitments, suggesting that secondary stakeholder strengths and concerns may be structural in nature. However, there is also evidence of relationships across dimensions, indicating that firms’ involvement in CSP can generate momentum. The rich implications of these findings are discussed.

The impact on health of recurring migrations to the United States

Considerable research has focused on whether or not immigrants’ health declines to match that of comparable native-born people. This immigrant health convergence is hypothesized to be driven by immigrants’ acculturation to American society and habits. This is particularly problematic for a country such as the United States which combines a high number of immigrants, bad health habits among the native born, and an expensive health care system. Previous research in this literature uses the duration of an immigrant’s current stay in the United States as the measure of exposure to acculturation. Using the duration of the immigrant’s current stay in the United States implicitly assumes one long-term move. However, the largest immigrant group in the United States (Mexicans) is characterized by a pattern of repeated migration trips. This paper separates out the effects of migration duration and lifetime cumulative experience for Mexican immigrants to the United States. The empirical analysis is carried out using data from the Mexican Migration Project. The Mexican Migration Project has been collecting data on Mexican immigrants to the United States since the mid-1980s. Empirical results find that while overall time spent in the United States supports the acculturation hypothesis, single-trip migration duration has the opposite effect. The positive impact of single-trip duration on health is likely caused by recovery time needed to compensate for difficult crossings into the United States which have an even harsher effect on health if the individual undertakes short, repeated migrations. We also find that having Latino friends improves health while Anglo friends cause faster convergence and worse long-term health impacts. Both support the acculturation hypothesis. Results suggest that researchers need to focus on the cumulative impact of time spent in the United States rather than relying on just the duration of the latest trip. This suggests a much larger negative effect of migration on health than studies relying solely on migration duration. In the case of repeated migration patterns, this imposes costs on both the health care systems of the destination (USA) and source (Mexico) countries. Repeated immigration to the United States can result in acculturation which causes bad health habits to be brought back to Mexico, along with the accompanying costs these incur.