Return migration, entrepreneurship, and assets

Abstract

International migrants return to their home countries in high proportions. This research analyzes the relationship between return migration and entre-preneurship in the case of Mexico. Using past community migration as an instrument, we find that return migrants become entrepreneurs more often than non-migrants, but only in recent periods. Return migrants also tend to accumulate more assets than non-migrants. However, the businesses owned by return migrants tend to have fewer than four employees, and thus do not have much potential for job creation. Policy supporting bigger enterprises is recommended.

Keywords

• self-employed
• migration policy
• mexico