Time Allocation and Remittance Flows: The Case of Temporary Mexican Migration to the U.S.

Abstract

In this paper, a theoretical and empirical analysis of temporary migrant behavior, including remittance flows and time allocation between point of origin and destination, is presented. The theoretical model allows for intertemporal utility maximization by migrants who may have dependents to support and cultural ties to their region of origin. Data on temporary Mexican migration to the U.S. collected by the Mexican National Center of Labor Information and Statistics (CENIET) was used. The results suggest that wage rates, family characteristics, and arrests are important predictors of temporary migratory behavior.