Return Migration and Occupational Change

Nadeem Ilahi

Review of Development Economics, 1999, vol. 3, issue 2, 170-186

Abstract: Return migrants exhibit a high tendency for self‐employment over waged employment. Using cross‐ sectional data from Pakistan, the paper explores the determinants of this choice. Retirement from the domestic labor market is not a reason for opting for self‐employment. The preference for non‐farm self‐employment is a two‐period process of self‐selection. Migrants who expect to switch occupation to non‐farm self‐employment upon return save more from high transitory overseas income than do their counterparts. Upon return, savings become a significant factor in the choice of self‐employment over waged employment. International migration and return have little influence on the choice of farm self‐employment.

Date: 1999
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