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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

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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Bibliographic 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;

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References

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  1. André van Stel & Roy Thurik & David Audretsch & Martin Carree, 2007. "Does Self-Employment Reduce Unemployment?," Scales Research Reports H200709, EIM Business and Policy Research.
  2. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
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  4. 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 Economics, Australian National University.
  5. David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc.
  6. Johansson, Edvard, 2000. " Self-Employment and Liquidity Constraints: Evidence from Finland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 123-34, March.
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  8. 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.
  9. David G. Blanchflower, 2000. "Self-Employment in OECD Countries," NBER Working Papers 7486, National Bureau of Economic Research, Inc.
  10. 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.
  11. Mahmood Hasan Khan, 2000. "Rural Poverty in Developing Countries," IMF Working Papers 00/78, International Monetary Fund.
  12. 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.
  13. 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.
  14. Aashish Mehta & Hector J. Villarreal, 2005. "Inequality and Heterogeneous Returns to Education in Mexico (1992-2002)," Ibero America Institute for Econ. Research (IAI) Discussion Papers 131, Ibero-America Institute for Economic Research.
  15. Schiller, Bradley R & Crewson, Philip E, 1997. "Entrepreneurial Origins: A Longitudinal Inquiry," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 523-31, July.
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Cited by:
  1. Carlos Bozzoli & Tilman Brück & Nina Wald, 2013. "Self-employment and Conflict in Colombia," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 117-142, February.

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