Self-Employment and Migration: Evidence from Mexico
AEA Papers and Proceedings
vol. 112,
May 2022
(pp. 361-65)
Abstract
Mexico has one of the highest self-employment rates in the OECD. I study the relationship between business ownership and migration from Mexico to the United States using longitudinal data from the Mexican Migration Project (MMP). I find that the self-employed have a substantially lower probability of moving north, either legally or illegally. Although running a business could allow a person to finance a costly trip to the US, it also raises the opportunity costs of leaving and the nonpecuniary benefits of staying at home. The findings highlight the role of self-employment in a developing country in the likelihood of emigration.Citation
Gutierrez-Li, Alejandro. 2022. "Self-Employment and Migration: Evidence from Mexico." AEA Papers and Proceedings, 112: 361-65. DOI: 10.1257/pandp.20221112Additional Materials
JEL Classification
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J23 Labor Demand
- J61 Geographic Labor Mobility; Immigrant Workers
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration