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More Pushed than Pulled: Self-employment in rural Mexico ten years after NAFTA

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Author Info
Sindy A. González
Héctor J. Villarreal

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Abstract

Who are the self-employed in rural Mexico? This paper tries to answer that question with special emphasis on the role of human capital in self-employment decisions. The model presented suggests that the need for leisure/flexibility may have a driving effect once the household framework is considered. Imperfect markets may hinder possible gains of self-employment with particular groups being more vulnerable (e.g. women). Some estimated parameters in this study for propensities to become self-employed and returns to education vary between 1994 and 2004, the first decade of the North American Free Trade Agreement (NAFTA). Pull and push factors emerge in the decision to enter into self-employment in rural area. Being self-employed still may be the best or sole option for a considerable percentage of the population. The alter may suggest that if self-employment in the rural sector is posed as a development strategy, this should come with adequate policy supports.

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File URL: http://www.mty.itesm.mx/egap/deptos/cee/cieds/2006-3.pdf
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Publisher Info
Paper provided by Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey in its series Working Papers with number 20063.

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Length: 30 pages
Date of creation: Nov 2006
Date of revision: Nov 2006
Handle: RePEc:egb:wpaper:20063

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Related research
Keywords: Mexico; rural; NAFTA; self-employment; leisure; flexibility;

Find related papers by JEL classification:
R10 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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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.:
  1. Kidd, M.P., 1993. "Immigrant Wage Differentials and the Role of Self-Employment in Australia," CEPR Discussion Papers 291, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University.
    Other versions:
  2. Donald Bruce & Douglas Holtz-Eakin & Joseph F. Quinn, 2000. "Self-Employment and Labor Market Transitions at Older Ages," Boston College Working Papers in Economics 490, Boston College Department of Economics. [Downloadable!]
    Other versions:
  3. David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September. [Downloadable!] (restricted)
    Other versions:
  5. Sarah Brown & Lisa Farrell & Mark N. Harris, 2003. "Who are the Self-employed? A New Approach," Monash Econometrics and Business Statistics Working Papers 11/03, Monash University, Department of Econometrics and Business Statistics. [Downloadable!]
    Other versions:
  6. Rees, Hedley & Shah, Anup, 1986. "An Empirical Analysis of Self-employment in the U.K," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 95-108, January. [Downloadable!] (restricted)
  7. Johansson, Edvard, 2000. " Self-Employment and Liquidity Constraints: Evidence from Finland," Scandinavian Journal of Economics, Blackwell Publishing, vol. 102(1), pages 123-34, March. [Downloadable!] (restricted)
  8. Sadoulet, Elisabeth & Janvry, Alain de & Davis, Benjamin, 2001. "Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico," World Development, Elsevier, vol. 29(6), pages 1043-1056, June. [Downloadable!] (restricted)
  9. Hungerford, Thomas & Solon, Gary, 1987. "Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 175-77, February. [Downloadable!] (restricted)
  10. Mahmood Hasan Khan, 2000. "Rural Poverty in Developing Countries--Issues and Policies," IMF Working Papers 00/78, International Monetary Fund.
  11. Schiller, Bradley R & Crewson, Philip E, 1997. "Entrepreneurial Origins: A Longitudinal Inquiry," Economic Inquiry, Oxford University Press, vol. 35(3), pages 523-31, July.
  12. David B. Audretsch & Roy Thurik & Andre van Stel & M.A. Carree, 2006. "Does Self-Employment Reduce Unemployment?," Papers on Entrepreneurship, Growth and Public Policy 2005-07, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
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  13. Calvo, Guillermo A & Wellisz, Stanislaw, 1980. "Technology, Entrepreneurs, and Firm Size," The Quarterly Journal of Economics, MIT Press, vol. 95(4), pages 663-77, December. [Downloadable!] (restricted)
  14. Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
    Other versions:
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