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Is Entrepreneurship Inherited? A Study of Intergenerational Social Mobility in Mexico

Viviana Velez-Grajales and Roberto Velez-Grajales
Authors registered in the RePEc Author Service: Roberto Velez Grajales

Latin American Journal of Economics-formerly Cuadernos de Economía, 2014, vol. 51, issue 2, 247-278

Abstract: The 2006 ESRU Survey on Social Mobility in Mexico is used to identify determinants of the decision to become an entrepreneur and analyze entrepreneurs' intergenerational (i.e., respondents-parents) household wealth mobility. Entrepreneurs are distinguished from own-account workers. First, we find that entrepreneurship is strongly determined by the father being an entrepreneur and not necessarily by the individual's initial wealth or educational attainment. Second, the mean ef fect of entrepreneurial activity on individual income is positive and greater for those whose parents belonged to the extreme ends of the socioeconomic distribution. Third, it is more likely for entrepreneurs to experience greater upward wealth mobility than non-entrepreneurs.

Keywords: social mobility; entrepreneurship; propensity score matching; Mexico (search for similar items in EconPapers)
JEL-codes: C21 J62 L26 (search for similar items in EconPapers)
Date: 2014
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Latin American Journal of Economics-formerly Cuadernos de Economía is currently edited by Raimundo Soto

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Handle: RePEc:ioe:cuadec:v:51:y:2014:i:2:p:247-278