IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-02o10004.html
   My bibliography  Save this article

Migration, credit constraints and self-employment: A simple model of occupational choice, inequality and growth

Author

Listed:
  • Hillel Rapoport

    (CREDPR, Department of Economics, Stanford University, and Bar-Ilan University)

Abstract

In this note we offer a simplification of Mesnard (2001) who extended Banerjee and Newman (1993) for migration. In doing so, we obtain a simple model of occupational choice, inequality and growth, where liquidity constraints determine not only access to entrepreneurship but also access to migration. Starting from an initial underdevelopment trap, we explore the conditions under which migration prospects allow for a shift towards the efficient long-run equilibrium of the economy. This complements the empirical literature on return migration and self-employment in highlighting the mechanisms whereby, in alleviating liquidity constraints for some households, migration and remittances may have significant aggregated effects.

Suggested Citation

  • Hillel Rapoport, 2002. "Migration, credit constraints and self-employment: A simple model of occupational choice, inequality and growth," Economics Bulletin, AccessEcon, vol. 15(7), pages 1-5.
    • Handle: RePEc:ebl:ecbull:eb-02o10004
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2002/Volume15/EB-02O10004A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:bla:rdevec:v:3:y:1999:i:2:p:170-86 is not listed on IDEAS
    2. Nadeem Ilahi, 1999. "Return Migration and Occupational Change," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 170-186, June.
    3. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-298, April.
    4. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
    5. repec:bla:scotjp:v:48:y:2001:i:2:p:164-78 is not listed on IDEAS
    6. Barry McCormick & Jackline Wahba, 2001. "Overseas Work Experience, Savings and Entrepreneurship Amongst Return Migrants to LDCs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 164-178, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wahba, Jackline & Zenou, Yves, 2012. "Out of sight, out of mind: Migration, entrepreneurship and social capital," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 890-903.
    2. I-Ling Shen & Frédéric Docquier & Hillel Rapoport, 2010. "Remittances and inequality: a dynamic migration model," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 197-220, June.
    3. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
    4. repec:ebl:ecbull:v:15:y:2002:i:7:p:1-5 is not listed on IDEAS
    5. Slobodan Djajić, 2010. "Investment opportunities in the source country and temporary migration," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(2), pages 663-682, May.
    6. Theodore Lianos & Anastasia Pseiridis, 2009. "On the occupational choices of return migrants," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(2), pages 155-181, March.
    7. Bossavie, Laurent & Görlach, Joseph-Simon & Özden, Çağlar & Wang, He, 2024. "Capital Markets, Temporary Migration and Entrepreneurship: Evidence from Bangladesh," World Development, Elsevier, vol. 176(C).
    8. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    9. repec:eur:ejmsjr:535 is not listed on IDEAS
    10. Marchetta, Francesca, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," World Development, Elsevier, vol. 40(10), pages 1999-2013.
    11. Chaitali Sinha, 2017. "International Migration and Welfare Implications," South Asian Journal of Macroeconomics and Public Finance, , vol. 6(2), pages 209-229, December.
    12. Djajić, Slobodan & Vinogradova, Alexandra, 2015. "Overshooting the Savings Target: Temporary Migration, Investment in Housing and Development," World Development, Elsevier, vol. 65(C), pages 110-121.
    13. Kupets Olga, 2011. "Brain Gain or Brain Waste? The Performance of Return Labor Migrants in the Ukrainian Labor Market," EERC Working Paper Series 11/06e, EERC Research Network, Russia and CIS.
    14. Docquier, Frederic & Rapoport, Hillel, 2004. "Skilled migration: the perspective of developing countries," Policy Research Working Paper Series 3382, The World Bank.
    15. Liqiong Lin & Mohamad D. Revindo & Christopher Gan & Quang Thi Thieu Nguyen, 2021. "Return home and start new businesses: internal migration in China," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 49-66, May.
    16. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.
    17. Naudé, Wim & Siegel, Melissa & Marchand, Katrin, 2015. "Migration, entrepreneurship and development: A critical review," MERIT Working Papers 2015-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. Commander, Simon & Kangasniemi, Mari & Winters, L. Alan, 2003. "The Brain Drain: Curse or Boon?," IZA Discussion Papers 809, Institute of Labor Economics (IZA).
    19. Philippe De Vreyer & Flore Gubert & Anne-Sophie Robilliard, 2010. "Are There Returns to Migration Experience? An Empirical Analysis using Data on Return Migrants and Non-Migrants in West Africa," Annals of Economics and Statistics, GENES, issue 97-98, pages 307-328.
    20. Marion Mercier & Anda David & Ramón Mahia & Rafael de Arce, 2016. "Reintegration upon return: insights from Ecuadorian returnees from Spain," Post-Print hal-01726275, HAL.
    21. Michel Beine & Khalid Sekkat, 2014. "Emigration and origin country's institutions: does the destination country matter?," Middle East Development Journal, Taylor & Francis Journals, vol. 6(1), pages 20-44, January.
    22. Croitoru Alin, 2019. "No Entrepreneurship without Opportunity: The Intersection of Return Migration Research and Entrepreneurship Literature," Social Change Review, Sciendo, vol. 17(1), pages 33-60, December.

    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • F2 - International Economics - - International Factor Movements and International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-02o10004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.