2022 article
Self-Employment and Migration: Evidence from Mexico
A. L. E. J. A. N. D. R. O. GUTIERREZ-LI. (2022, May). AEA PAPERS AND PROCEEDINGS, Vol. 112, pp. 361–365.
UN Sustainable Development Goal Categories
1. No Poverty
(Web of Science)
5. Gender Equality
(Web of Science)
9. Industry, Innovation and Infrastructure
(Web of Science)
Source: Web Of Science
Added: June 20, 2022
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.