Return migration, entrepreneurship, and assets
No. 89 (2021-12-01)Author(s)
-
Jaime Lara Lara
-
Jesús Alberto Elizondo Salazar
-
Adrián Frausto Segovia
-
Tania Lizbeth López Cano
-
Héctor Javier Quiroga Suárez
Abstract
International migrants return to their home countries in high proportions. This research analyzes the relationship between return migration and entrepreneurship in the case of Mexico. Using past community migration as an instrument, we find that return migrants become entrepreneurs more often than non-migrants, but only in recent periods. Return migrants also tend to accumulate more assets than non-migrants. However, the businesses owned by return migrants tend to have fewer than four employees, and thus do not have much potential for job creation. Policy supporting bigger enterprises is recommended.
References
Baum, C. F., Schaffer, M. E., & Stillman, S. (2002). IVREG2: Stata module for extended instrumental variables/2SLS and GMM estimation. Retrieved from http://ideas.repec.org/c/boc/bocode/s425401.html
Calderon, G., Iacovone, L., & Juarez, L. (2016). Opportunity versus Necessity: Understanding the Heterogeneity of Female Micro-Entrepreneurs. The World Bank Economic Review, lhw010. https://doi.org/10.1093/wber/lhw010
Campos-Vazquez, R. M., & Lara, J. (2012). Self-selection patterns among return migrants: Mexico 1990-2010. IZA Journal of Migration, 1(1). https://doi.org/10.1186/2193-9039-1-8
Collier, W., Piracha, M., & Randazzo, T. (2018). Remittances and return migration. Review of Development Economics, 22(1), 174–202. https://doi.org/10.1111/rode.12335
Croitoru, A. (2019). No Entrepreneurship without Opportunity: The Intersection of Return Migration Research and Entrepreneurship Literature. Social Change Review, 17(1). https://doi.org/10.1515/scr-2019-0001
Démurger, S., & Xu, H. (2011). Return Migrants: The Rise of New Entrepreneurs in Rural China. World Development, 39(10), 1847–1861. https://doi.org/10.1016/j.worlddev.2011.04.027
Dustmann, C., & Görlach, J. S. (2016). The economics of temporary migrations. Journal of Economic Literature, 54(1), 98–136. https://doi.org/10.1257/jel.54.1.98
Dustmann, C., & Kirchkamp, O. (2002). The optimal migration duration and activity choice after re-migration. Journal of Development Economics, 67(2), 351–372. https://doi.org/10.1016/S0304-3878(01)00193-6
Hagan, J. M., & Wassink, J. (2016). New Skills, New Jobs: Return Migration, Skill Transfers, and Business Formation in Mexico. Social Problems, 63(4), 513–533. https://doi.org/10.1093/socpro/spw021
Kabubo-Mariara, J. (2003). The linkages between property rights, migration, and productivity: The case of Kajiado district, Kenya. Environment and Development Economics, 8(4), 621–636. https://doi.org/10.1017/S1355770X0300330
Kotorri, M., Krasniqi, B. A., & Dabic, M. (2020). Migration, Remittances, and Entrepreneurship: A Seemingly Unrelated Bivariate Probit Approach. Remittances Review, 5(1), 15–36. https://doi.org/10.33182/rr.v5i1.807
Lara Lara, J. (2017). Ingresos laborales en México y Estados Unidos para migrantes temporales. Migraciones Internacionales, 9(1), 95–117.
Lianos, T., & Pseiridis, A. (2009). On the occupational choices of return migrants. Entrepreneurship and Regional Development, 21(2), 155–181. https://doi.org/10.1080/08985620802176187
Lindstrom, D. P. (1996). Economic Opportunity in Mexico and Return Migration from the United States. Demography, 33(3), 357. https://doi.org/10.2307/2061767
Masferrer, C., & Roberts, B. R. (2016). The Changing Patterns of Return Migration from the USA to Mexico and Their Policy Implications. In D. L.Leal & N. P.Rodríguez (Eds.), Migration in an Era of Restriction and Recession (pp. 235–258). https://doi.org/10.1007/978-3-319-24445-7_12
Massey, D. S., Durand, J., & Pren, K. A. (2016). Why border enforcement backfired. American Journal of Sociology, 121(5), 1557–1600. https://doi.org/10.1086/684200
Massey, D. S., & Parrado, E. a. (1998). International Migration and Business Formation in Mexico. Social Science Quarterly, Vol. 79, pp. 1–20. https://doi.org/http://www.blackwellpublishing.com/journal.asp?ref=0038-4941
Mckenzie, D., & Rapoport, H. (2007). Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico. Journal of Development Economics, 84(1), 1–24. https://doi.org/10.1016/j.jdeveco.2006.11.003
Meyers, D. W. (2003). Does “Smarter” Lead to Safer? An Assessment of the US Border Accords with Canada and Mexico. International Migration, 41(4), 5–44. https://doi.org/10.1111/1468-2435.00251
Mitchell, C. (2006). The Significance of the September 11, 2001 Terrorist Attacks for United States-Bound Migration in the Western Hemisphere. International Migration Review, 36(1), 29–32. https://doi.org/10.1111/j.1747-7379.2002.tb00067.x
Naudé, W., Siegel, M., & Marchand, K. (2017). Migration, entrepreneurship and development: critical questions. IZA Journal of Migration, 6(1). https://doi.org/10.1186/s40176-016-0077-8
Office of Population Research, P. U., & Departametnto de Estudios sobre Movimientos Sociales, U. de G. (2020). Mexican Migration Project. Retrieved January 23, 2020, from https://mmp.opr.princeton.edu/
Piracha, M., & Vadean, F. (2010). Return Migration and Occupational Choice: Evidence from Albania. World Development, 38(8), 1141–1155. https://doi.org/10.1016/j.worlddev.2009.12.015
Reinhold, S., & Thom, K. (2013). Migration experience and earnings in the mexican labor market. Journal of Human Resources, 48(3), 768–820. https://doi.org/10.3368/jhr.48.3.768
Stark, O. (2019). Behavior in reverse: reasons for return migration. Behavioural Public Policy, 3(1), 104–126. https://doi.org/10.1017/bpp.2018.27
Taylor, J. E., & Lopez-Feldman, A. (2010). Does migration make rural households more productive? Evidence from Mexico. Journal of Development Studies, 46(1), 68–90. https://doi.org/10.1080/00220380903198463
Valsecchi, M. (2014). Land property rights and international migration: Evidence from Mexico. Journal of Development Economics, 110, 276–290. https://doi.org/10.1016/j.jdeveco.2014.01.010
Wahba, J. (2014). Return migration and economic development. International Handbook on Migration and Economic Development, 327–349. https://doi.org/10.4337/9781782548072.00016
Wahba, J., & Zenou, Y. (2012). Out of sight, out of mind: Migration, entrepreneurship and social capital. Regional Science and Urban Economics, 42(5), 890–903. https://doi.org/10.1016/j.regsciurbeco.2012.04.007
Woodruff, C., & Zenteno, R. (2007). Migration networks and microenterprises in Mexico. Journal of Development Economics, 82(2), 509–528. https://doi.org/10.1016/j.jdeveco.2006.03.006
License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.