This paper examines the relationship between skills prices (wage premiums) and inequality in migrant sending countries (mainly from Latin America) and explores the implications for education policies. Most of the evidence is based on the case of Mexico, a Latin American country that is also an Organisation for Economic Co-operation and Development…

The assumption that Mexican emigration to the United States provides benefits to Mexico in the form of jobs for unemployed Mexicans and wage remittances has kept Mexican officials from discouraging illegal emigration. In fact, emigration drains the Mexican economy and should be a cause for Mexican government concern. (Author/MJL)