Wealth in Middle and Old Age in Mexico: The Role of International Migration

Abstract

This article examines the impact that past migration to the U.S. has on the current economic well-being of individuals in middle or old age who have returned to Mexico. A priori, the net effect of U.S. migration on wealth among return migrants is difficult to predict; there are counteracting factors that can affect wealth positively or negatively. Using data from the Mexican Health and Aging Study 2001 and correcting for selection factors, the long-term effect of U.S. migration for return migrants was found consistently positive in terms of their accumulated personal wealth at middle and old age. This article speculates about the possible mechanisms that can explain this apparent advantage.