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Self-Employment and Migration: Evidence from Mexico

Author

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  • Alejandro Gutierrez-Li

Abstract

Mexico has one of the highest self-employment rates in the OECD. I study the relationship between business ownership and migration from Mexico to the United States using longitudinal data from the Mexican Migration Project (MMP). I find that the self-employed have a substantially lower probability of moving north, either legally or illegally. Although running a business could allow a person to finance a costly trip to the US, it also raises the opportunity costs of leaving and the nonpecuniary benefits of staying at home. The findings highlight the role of self-employment in a developing country in the likelihood of emigration.

Suggested Citation

  • Alejandro Gutierrez-Li, 2022. "Self-Employment and Migration: Evidence from Mexico," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 361-365, May.
    • Handle: RePEc:aea:apandp:v:112:y:2022:p:361-65
    DOI: 10.1257/pandp.20221112
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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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