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Title of Dissertation : Return Migration and Inequality in Mexico

During his time as a LAII PhD fellow, Daniel is exploring the impact of return migration on inequality in Mexico. Migrants returning from the United States acquire financial resources, skills, and knowledge that can translate into significant economic development in Mexico. Considering that those migrating are not the wealthiest, their return can have positive effects for increasing economic welfare. Preliminary findings indicate the return migration in fact reduces inequality and poverty at the municipality level in Mexico. The mechanisms explored to help explain these findings include the effect return migration has on the expansion of the financial system, and the earnings, and
investment decisions of return migrants. Initial results indicate that return migrants expand access and use of financial services at municipality level. Moreover, return migrants earn more than nonmigrants, and can contribute to reducing poverty and inequality by making long-term investments, including the acquisition of businesses and property.