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INTERGENERATIONAL TRANSMISSION OF ABILITIES AND SELF‐SELECTION OF MEXICAN IMMIGRANTS *
Author(s) -
Caponi Vincenzo
Publication year - 2011
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/j.1468-2354.2011.00637.x
Subject(s) - human capital , immigration , earnings , selection (genetic algorithm) , overlapping generations model , economics , estimation , demographic economics , social mobility , distribution (mathematics) , geography , labour economics , sociology , economic growth , computer science , mathematics , mathematical analysis , accounting , archaeology , management , artificial intelligence , social science
This article presents an intergenerational self‐selection model of migration and education that is capable of explaining the evolution of earnings and education across three generations of immigrants. By structurally estimating the model, it is possible to quantify the sacrifices made by the first generation of Mexican immigrants for the benefits of future generations. In particular, the estimation results suggest that there is a significant one time loss of human capital of immigrants upon migration, that migrants are positively selected from the ability distribution, and that they transmit substantial human capital to their children. Finally, the model is used to evaluate the effects of social policies designed to reduce the “brain drain” from Mexico to the United States.