Undocumented Mexico—U.S. Migration and the Returns to Households in Rural Mexico

Abstract This paper presents estimates of net income gains to a sample of households in rural Mexico from sending migrants illegally to the United States, correcting for sample selectivity bias, and it examines the role of expected income gains in driving illegal Mexico—U.S. migration. There is no evidence that people who migrate illegally to the United States are above‐average contributors to household income, either as workers in Mexico or as Mexico—U.S. migrants. However, other things being equal, villagers who are in the best position to contribute to household income as workers in Mexico are positively selected not to migrate to the United States.