Temporary Migration and Skill Upgrading: Evidence from Mexican Migrants

Content This paper explores the extent to which temporary Mexican migrants upgrade their skills while working in the United States. The vast majority of the migration that we observe is undertaken without documents. In contrast to Lacuesta (2006), we find that labor market performance in Mexico is positively related to one’s accumulated migration experience in the United States. Self-selection of high-skilled individuals into migration does not drive this result. We also investigate the possible mechanisms by which migration experience might improve earnings in Mexico. We find support for the notion that migration experience improves labor market outcomes by improving occupation specific skills rather than by inducing higher rates of occupational mobility or entrepreneurship. Keywords: return migration, skill-upgrading, wage premium, Mexico