Reducing trade barriers between US and Mexico would increase wages in Mexico and reduce the incentives for illegal immigration to US more than US- Mexico border wall does

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policy considers lowering the costs of trade between the U.S. and Mexico, which should, in turn, increase wages in Mexico. We simulate a 25 percent reduction in trade costs between Mexico and the U.S. We estimate that migration flows between Mexico and the United States would fall by more than that caused by the Secure Fence Act. Unlike the Secure Fence Act, however, reducing trade costs substantially benefits U.S. workers –raising college educated U.S. workers’ welfare by an equivalent of $80.59 in annual income and less educated U.S. workers’ welfare by an equivalent of $58.67 in annual income.

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Reducing trade barriers between US and Mexico would increase wages in the US

Topics

Alternative policies to a US-Mexico border wall expansion for combating illegal immigration

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Reducing trade barriers between US and Mexico would increase wages in the US

US Politics

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Alternative policies to a US-Mexico border wall expansion for combating illegal immigration

US Politics

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policy considers lowering the costs of trade between the U.S. and Mexico, which should, in turn, increase wages in Mexico. We simulate a 25 percent reduction in trade costs between Mexico and the U.S. We estimate that migration flows between Mexico and the United States would fall by more than that caused by the Secure Fence Act. Unlike the Secure Fence Act, however, reducing trade costs substantially benefits U.S. workers –raising college educated U.S. workers’ welfare by an equivalent of $80.59 in annual income and less educated U.S. workers’ welfare by an equivalent of $58.67 in annual income.

US Politics

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