Abstract
The labor markets in the US and Mexico are closely linked through migrant workers and remittances. In this paper, we investigate how the prevalence of the Covid-19 epidemic in the US affected the Mexican labor market. We construct a Mexican municipality-level measure of the exposure to Covid-19 in the US using migration data. We find a positive effect of the Covid-19 exposure in the US on work hours among workers in Mexico. We also find that the effect varies across subgroups which indicates that the responses in worked hours depend on the household dynamics, employment opportunities, and the nature of the occupation-specific tasks.