Full Citation
Title: Are Unskilled Migrants an Economic Burden? US Foreign Direct Investment and Mexican migration
Citation Type: Conference Paper
Publication Year: 2019
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Abstract: In the aggregate, labor migration (labor flows) and foreign direct investment (FDI) flows are found complementary in economic theory. However, recent empirical evidence finds that when migrants are disaggregated according to skill level, FDI flows substitute for unskilled labor flows but complement skilled labor flows. The purpose of this paper is to test whether disaggregating Mexican migrants by labor skill reflects complementarity between FDI and skilled migration and substitutability between FDI and unskilled migration. Results will suggest the utility of using either the Heckscher-Ohlin model or Specific Factors trade model in understanding international migration in terms of capital and labor flows. If unskilled labor flows and FDI flows are substitutable, then recent empirical evidence suggests unskilled Mexican labor immigration should lead to FDI outflows, decreased US productivity, and reduced economic growth. This project will use regression analysis on migrants' labor skill, labor flows, and FDI flows between Mexico and the US using secondary data sources to determine whether unskilled Mexican migrants lead to FDI outflows.
Url: http://www.ncurproceedings.org/ojs/index.php/NCUR2019/article/view/3026
Url: http://www.ncurproceedings.org/ojs/index.php/NCUR2019/article/view/3026/1547
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Authors: Comolli, Lev
Conference Name: Proceedings of The National Conference On Undergraduate Research (NCUR) 2019
Publisher Location: Kennesaw, Georgia
Data Collections: IPUMS USA
Topics: Migration and Immigration
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