Seeking Social Security: An Alternative Motivation for Mexico-US Migration

In this analysis we investigate the degree to which the absence of effective pension systems may generate motivations for international migration as a means of self-financing retirement. Using ethnosurvey data gathered in selected Mexican communities and US destination areas, we estimate models to predict the odds of US migration from indicators of relative wages and whether or not jobs in Mexico were covered by that country's social security system. We find that by holding constant the binational differential in expected wages, the odds of out-migration were much higher for male household heads working in jobs that were not covered by social security compared with those working in jobs that enjoyed such coverage. Subsequent analyses showed that the odds of receiving a pension in old age were systematically higher for former US migrants, and that the likelihood of pension receipt rose steadily as the number of US trips and amount of US experience accumulated.     

Immigrants and natives in U.S. science and engineering occupations, 1994–2006

Between 1994 and 2006, the ratio of foreign-born scientists and engineers (FSE) to native scientists and engineers (NSE) doubled. I decompose this change into a migration effect (which accounts for migration in general), a proportional college effect (which accounts for the relative proportions of college graduates among migrant and native workers), and a proportional science and engineering (S&E) effect (which accounts for the relative proportions of S&Es among migrant and native college-educated workers). Results show that the migration effect explains about three-quarters of the increase in FSE/NSE during the entire period under study. The proportional S&E effect, which captures changes in the ratio as a result of immigration of S&Es in excess of what would be expected from general migration alone, was largest in 1995–1998, which were years of sustained economic growth. Conversely, a slower economy coincided with a declining proportional S&E effect after 2000. Increases in the annual cap on H-1B visas, an important avenue of entry for foreign-born S&Es, had little effect on the ratio. In short, during 1994–2006, the association between economic swings and the specific, more than proportional migration of S&Es was much stronger than the association between the latter and changes in the H-1B cap.     

A test of the stranger-interviewer norm in the Dominican Republic

We offer the first empirical test of the ‘stranger-interviewer norm’, according to which interviewers in social, demographic, and health surveys should be strangers—not personally familiar with respondents. We use data from an experimental survey in the Dominican Republic that featured three types of interviewer: from out of town (outsiders); local but unknown to the respondent (local-strangers); and local with a previous relationship to the respondent (insiders). We were able to validate answers to up to 18 questions per respondent, mainly by checking official documents in their possession. Contrary to expectations derived from the stranger-interviewer norm, respondents were more reluctant to show the documents needed for validation when the interviewer was an outsider. Furthermore, and again at odds with the stranger-interviewer norm, we found no difference in accuracy by type of interviewer. Our results have important implications for the selection of survey interviewers in less developed and non-Western settings.     

THE DISTRIBUTION OF POLITICAL POWER, THE COSTS OF RENT-SEEKING, AND ECONOMIC GROWTH

Poor economic growth in many countries can be explained by the misallocation of entrepreneurial resources to activities that do not foster growth. This paper deals with the relation between the distribution of political power, the allocation of entrepreneurial resources and growth. We model growth as deriving from Schumpeterian entrepreneurs who try to increase profits through innovation. We endogenize the choice of time devoted to this activity vis-a-vis other ways of increasing income, such as obtaining government subsidies. More unequal access to the political redistribution mechanism makes rent-seeking activities less profitable, and results in higher growth.     

Economic Theory and Subjective Well-being: Mexico

Several studies have been conducted on the topic of well-being. Most of them, however, have been done in industrialized countries where income is distributed relatively more equitatively and the population tends to be more homogeneous. This paper studies the relationship between subjective and economic well-being in Mexico, a country where the economic differences among the population are more clearly marked.

According to the economic definition of well-being, higher levels of income are associated with higher levels of well-being through greater levels of material consumption. Taking into consideration this definition, it is worth asking just how important income is for an individual's happiness?Existing studies in psychology have found a positive correlation between economic well-being (socioeconomic status) and subjective well-being (happiness). However, this positive relationship is weak and a large percentage of human happiness remains unexplained.

Although the mentioned studies make a good approximation of the existing relationship between income and happiness, the characteristics or specification of the function that generates the relationship between these two variables is often assumed to be linear and positive. The main objective of this paper is to investigate further the relationship between subjective and economic well-being. In this study different specifications and approaches are used to approximate the relationship between these variables.

An empirical analysis is made from the results of a survey conducted in two Mexican cities. The investigation studies the impact of demographic, social, and economic variables on subjective well-being in Mexico. Several hypotheses are tested to identify the relationship between household income and individual well-being. It is found that income does not have a strong influence on neither well-being nor on the probability of happiness. However, people tend to overstress the impact that additional income would have on their subjective well-being. This fact could explain the importance that people place on increasing their income level, and it could possibly explain the relative sense of dissatisfaction once a higher income level is achieved.

The relationship between income and the sense of basic need satisfaction is also explored. A main assumption in economic theory suggests the existence of a direct relationship between these variables; however, empirical results show this relationship to be extremely weak. Results indicate that subjective well-being is positively related to the sense of basic need satisfaction but not to income.