This paper assumes that migrants derive utility from their own consumption, their own leisure, and remittances to their family. It hypothesizes that the labor supply and remittances of Mexican migrants in the U.S. are jointly determined. Shits in real exchange rates affect the cost of sending a...

Remittances to Mexico have increased more than six times in the past two decades. The boom in remittances can be explained mainly by U.S. economic performance as an attraction for Mexican workers, which implies more migration flows but also better-paying jobs. The immigrant’s income...