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This paper uses a small rural household survey in Mexico (2003) to examine the direct and indirect impacts of migration on the rural economy. For example, while the direct effects of migration include upward pressure on rural prices and wages, the indirect effects include general equilibrium wage and price effects and dynamic investment effects. Results suggest that the direct effects of migration are smaller than the indirect effects. In the short-term, a 10 percent increase in returns from international migration lead to a 5 percent increase in rural wages and a 52 percent marginal increase in investment in education. In the long-term, a similar 10 percent increase in the returns from international migration lead to only a slight, 1 percent increase in rural wages and large marginal increases in investment in education (52 percent) and housing (15 percent).