A Microeconomic Stochastic Model of the Behavior of Mexican Migrants in the U.S.

This paper develops a stochastic model that explains the behavior of an immigrant in the United States. In the proposed model, the agent has a subsistence consumption subject to two restrictions: the first considers an irregular income together with saving, while the second considers his consumption routine. The proposed model is used to determine the optimal proportions of income the individual obtains from his work and saving when there is a surplus, and the optimal strategy for future consumption. Thus, a VAR model provides empirical evidence confirming the results of the proposal: data on the consumption and salary of the individual are used, together with relevant variables associated with migrants from 1980 to 2011, using a Granger causality analysis, impulse response functions and variance decomposition.