Out of sight, out of mind: Migration, entrepreneurship and social capital

Jackline Wahba and Yves Zenou

Regional Science and Urban Economics, 2012, vol. 42, issue 5, 890-903

Abstract: The aim of this paper is to investigate whether return migrants are more likely to become entrepreneurs than non-migrants. We develop a theoretical search model that puts forward the trade off faced by returnees since overseas migration provides an opportunity for human and physical capital accumulation but, at the same time, may lead to a loss of social capital back home. We test the predictions of the model using data from Egypt. We find that, even after controlling for the endogeneity of the temporary migration decision, an overseas returnee is more likely to become an entrepreneur than a non-migrant. Although migrants may lose their social capital, they accumulate savings and experience overseas that increase their chances of becoming entrepreneurs.

Keywords: Social capital; Entrepreneurship; Selection; Savings (search for similar items in EconPapers)
JEL-codes: L26 O12 O15 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (117)

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Related works:
Working Paper: Out of Sight, Out of Mind: Migration, Entrepreneurship and Social Capital (2009)
Working Paper: Out of Sight, Out of Mind: Migration, Entrepreneurship and Social Capital (2009)
Working Paper: Out of Sight, Out of Mind: Migration, Entrepreneurship and Social Capital (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:42:y:2012:i:5:p:890-903

DOI: 10.1016/j.regsciurbeco.2012.04.007

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