Migration, credit constraints and self-employment: A simple model of occupational choice, inequality and growth
AbstractIn 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 15 (2002)
Issue (Month): 7 ()
Contact details of provider:
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- F2 - International Economics - - International Factor Movements and International Business
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Abhijit V. Banerjee & Andrew F. Newman, 1990.
"Occupational Choice and the Process of Development,"
911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- 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 274-98, April.
- McCormick, Barry & Wahba, Jackline, 2001. "Overseas Work Experience, Savings and Entrepreneurship amongst Return Migrants to LDCs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 164-78, May.
- Dustmann, Christian & Kirchkamp, Oliver, 2001.
"The Optimal Migration Duration and Activity Choice after Re-migration,"
IZA Discussion Papers
266, Institute for the Study of Labor (IZA).
- 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.
- Dustmann, Christian & Kirchkamp, Oliver, 2000. "The Optimal Migration Duration and Activity Choice after Re-migration," Sonderforschungsbereich 504 Publications 00-39, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
- Ilahi, Nadeem, 1999. "Return Migration and Occupational Change," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 170-86, June.
- I-Ling Shen & Frédéric Docquier & Hillel Rapoport, 2010.
"Remittances and inequality: a dynamic migration model,"
Journal of Economic Inequality,
Springer, vol. 8(2), pages 197-220, June.
- Frederic, DOCQUIER & Hillel, RAPOPORT & I-Leng Shen, 2007. "Remittances and inequality : A dynamic migration model," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2007003, Université catholique de Louvain, Département des Sciences Economiques.
- Frédéric Docquier & Hillel Rapoport, 2003. "Remittances and Inequality: A Dynamic Migration Model," Working Papers 2003-05, Department of Economics, Bar-Ilan University.
- Docquier, Frédéric & Rapoport, Hillel, 2003. "Remittances and Inequality: A Dynamic Migration Model," IZA Discussion Papers 808, Institute for the Study of Labor (IZA).
- Frederic Docquier & Hillel Rapoport & I-Ling Shen, 2006. "Remittances and inequality: A dynamic migration model," CReAM Discussion Paper Series 0614, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Mendola, Mariapia, 2008.
"Migration and technological change in rural households: Complements or substitutes?,"
Journal of Development Economics,
Elsevier, vol. 85(1-2), pages 150-175, February.
- Mariapia MENDOLA, 2005. "Migration and technological change in rural households: complements or substitutes?," Departmental Working Papers 2005-15, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Vincenzo Lombardo, 2012. "Modern foundations of dual economy models," Discussion Papers 8_2012, CRISEI, University of Naples "Parthenope", Italy.
- Sahana Roy Chowdhury, 2008. "Migration in a model of occupational choice," Indian Growth and Development Review, Emerald Group Publishing, vol. 1(1), pages 84-94, April.
- Kimhi, Ayal, 2009.
"Entrepreneurship and Income Inequality in Southern Ethiopia,"
47505, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
- Ayal Kimhi, 2010. "Entrepreneurship and income inequality in southern Ethiopia," Small Business Economics, Springer, vol. 34(1), pages 81-91, January.
- Kimhi, Ayal, 2009. "Entrepreneurship and Income Inequality in Southern Ethiopia," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Mariapia Mendola, 2004. "Migration and Technological Change in Rural Households: Complements or Substitutes?," Development Working Papers 195, Centro Studi Luca d\'Agliano, University of Milano.
- Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, Elsevier.
- Jialu Liu, 2010. "Does Migration Income Help Hometown Business? Evidences from Rural Households Survey in China," Economics Bulletin, AccessEcon, vol. 30(4), pages 2598-2611.
- Rapoport, Hillel & Docquier, Frédéric, 2005.
"The Economics of Migrants’ Remittances,"
IZA Discussion Papers
1531, Institute for the Study of Labor (IZA).
- Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
- Jialu Liu, 2011. "Human capital, migration and rural entrepreneurship in China," Indian Growth and Development Review, Emerald Group Publishing, vol. 4(2), pages 100-122, September.
- Gordon H. Hanson, 2006.
"Illegal Migration from Mexico to the United States,"
Journal of Economic Literature,
American Economic Association, vol. 44(4), pages 869-924, December.
- Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," NBER Working Papers 12141, National Bureau of Economic Research, Inc.
- Bertoli Simone, 2006. "Remittances and the Dynamics of Human Capitalin the Recipient Country," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200607, University of Turin.
- Sonia Laszlo & Eric Santor, 2004. "Internal Migration and Borrowing Constraints: Evidence from Peru," Development and Comp Systems 0411022, EconWPA.
- Naude, Wim, 2008. "Entrepreneurship in Economic Development," Working Paper Series RP2008/20, World Institute for Development Economic Research (UNU-WIDER).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.