Regional migration, entrepreneurship and university alumni

You (Willow) Wu and Charles E. Eesley

Regional Studies, 2022, vol. 56, issue 6, 1015-1032

Abstract: How does the migration of university graduates from rural to urban areas impact entrepreneurial performance? We propose that rural-to-urban migrants found larger firms than urban entrepreneurs because migrants are less risk averse, and the migration process further reduces risk aversion. Also, we propose that rural-to-urban migrants found larger firms than rural entrepreneurs because urban areas provide better entrepreneurial opportunities and resources to create larger firms. To test our hypotheses empirically, we conducted an alumni survey and analysed 283 entrepreneurs who were admitted from various locations in China to Tsinghua University in Beijing, and then went to rural areas or urban areas upon graduation. We find that alumni entrepreneurs who migrated from rural to urban areas are more likely to found firms in the top quantile of firm size. This study provides implications for designing regional policies that facilitate labour mobility from rural to urban areas.

Date: 2022
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DOI: 10.1080/00343404.2021.1934432

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