Return Migration and Self-Employment: Evidence from Mexican Migrants

Sandra Orozco-Aleman () and Heriberto Gonzalez-Lozano ()
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Sandra Orozco-Aleman: Mississippi State University
Heriberto Gonzalez-Lozano: Mississippi State University

Journal of Labor Research, 2021, vol. 42, issue 2, No 2, 148-183

Abstract: Abstract We study how changes in return migration patterns over the last decade impacted self-employment rates in Mexico. Using state historical migration rates as instruments, we calculate elasticities of self-employment to return migration of 0.093, 0.156, and 0.236 for all workers, males, and low-educated male workers, respectively. Back-of-the-envelope calculations indicate that the 0.18 percentage point decline in the return migration rates observed between 2006 and 2016 reduced the self-employment rate by 5.8 percent relative to the level seen in 2006. Additionally, we estimate the gains from migration and self-employment among Mexican return migrants controlling for observable and unobservable characteristics. While return migrants have earnings 1.72 log points higher than non-migrant Mexican workers, we do not find differences in the earnings of self-employed and wage-employed return migrants once we control for unobservable skills.

Keywords: Return migration; Business ownership; Self-employment; Mexico (search for similar items in EconPapers)
JEL-codes: F22 J24 J61 O15 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s12122-021-09319-6

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