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)
10. Reduced Inequalities
(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.