Out of Sight, Out of Mind: Migration, Entrepreneurship and Social Capital

Jackline Wahba and Yves Zenou

No 930, RF Berlin - CReAM Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM)

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 lose their original social networks whilst overseas, savings and human capital accumulation acquired abroad over-compensate for this loss.

Keywords: Social capital; entrepreneurship; selection; savings (search for similar items in EconPapers)
JEL-codes: L26 O12 O15 (search for similar items in EconPapers)
Date: 2009-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Out of sight, out of mind: Migration, entrepreneurship and social capital (2012)
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:crm:wpaper:0930

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