Job Market Paper:
A large share of migrants move for economic reasons. In most cases, the economic benefits of migration carry over to migrants' family members, making it critical to study migration decisions in conjunction with the remittance decisions of potential migrants. For this purpose, I develop and estimate a model of two-member households in which one member makes migration decisions based on expected wages and migration costs as well as the probability and amount of potential remittances for Mexican households. Counterfactual exercises on the estimated model reveal that remittances are an integral part of household decision making, and a model without remittances cannot capture the data well. I show that an increase in migration costs would decrease the average migration probability and increase the average remittance probability, conditional on migrating. This decrease is the largest for the least-educated migrants.