We examine the impact of different types of social networks on the wages earned by unauthorized and legal Mexican migrants during their last U.S. trip. Familial ties raise unauthorized and legal migrants' hourly wages by an average of 2.6% and 8%, respectively, and friendship ties increase their wages by 5.4% and 3.6%, correspondingly. Furthermore, family ties seem to comparatively favor legal migrants in terms of earnings, raising their wages by approximately 0.9% more than for similar unauthorized migrants. These results underscore the potentially important role of social networks in raising Mexican migrants'earnings, particularly among unauthorized migrants. By increasing the returns to migration, social networks may provide a stimulus to continued emigration.

This paper examines the effect of immigration on the US trade flows. The model hypothesizes that immigration facilitates international trade with home countries by lowering transaction costs. Immigrants also demand products from their country of origin and thus stimulate trade. Using a panel data set we estimate a dynamic semiparametric fixed-effect model. The immigrant stock, a proxy for transaction costs, enters the model non-parametrically, whereas other variables enter the model log-linearly, as implied by the gravity model of international trade. To estimate this semiparametric model, we develop a new instrumental variable estimator with desirable asymptotic properties. The results indicate that the immigration effect on imports is positive for both finished and intermediate goods, but the effect on exports is positive only for finished goods. The findings supports the hypothesis that for finished goods where country specific information is crucial for trading, immigrants have a pro trade effect for both US imports and US exports. This pro trade effect of the information and knowledge carried by the immigrants is not observed for the US exports in the intermediate goods. Immigrants also have a strong demand effect both for the consumer and intermediate imports.International trade, immigration, semiparametric dynamic panel, instrumental variable,

In this article, the authors examine Hispanic underrepresentation in managerial and professional occupations on the basis of human capital deficiencies, economic and spatial barriers, and the lack of mentoring resources. Using Public Use Microdata Samples data, the authors find that there is a 6% chance of Hispanics working as a manager or a professional over other professions, whereas the same probability is 32% for non-Hispanic Whites. Also, the most important explanatory variable affecting the chances of being a manager or professional for Hispanics is fluency in English, whereas years of education are most important for non-Hispanic Whites.

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