Report: The Development and Fiscal Effects of Emigration on Mexico

A new report, The Development and Fiscal Effects of Emigration on Mexico, examines the ways in which migration influences development in Mexico, focusing on the fiscal consequences of migration for Mexico’s public sector. The report, authored by Raymundo Campos-Vazquez and Horacio Sobarzo of El Colegio de México’s Center for Economic Studies, find that when the labor market effects and household income benefits of remittances are compiled into a model of the Mexican economy, Mexico’s fiscal balance appears to benefit from emigration. The authors estimate Mexico’s GDP increased by 8.8 percent and its tax collection by 7.4 percent as a result.

KJ