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Entrepreneurship of the Left-Behind

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  • Giulietti, Corrado

    ()
    (IZA)

  • Wahba, Jackline

    ()
    (University of Southampton)

  • Zimmermann, Klaus F.

    ()
    (IZA and University of Bonn)

Abstract

While there is evidence that return migration promotes entrepreneurship and self-employment of those who migrated, previous studies have not focused on whether migration provides the same benefits to individuals who did not migrate. Using a unique dataset that provides information on both current and return migrants in rural China (RUMiC), we investigate the impact of migration on entrepreneurship among individuals with no migration experience. We explore the self-employment choices of individuals who live in households with return migrants and individuals who live in households that have migrants currently in the city, comparing them with individuals living in non-migrant households. Our methodology allows us to control for the potential endogeneity between the migration and self-employment decisions. The results show that return migration promotes self-employment among household members that have not migrated. However, left-behind individuals are less likely to be self-employed when compared to those living in non-migrant households.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7270.

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Length: 28 pages
Date of creation: Mar 2013
Date of revision:
Publication status: published in: Research in Labor Economics, 2013, 37, 65-92. Pre-publication version available here
Handle: RePEc:iza:izadps:dp7270

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Related research

Keywords: rural to urban migration; self-employment; RUMiC dataset;

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References

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  1. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, Elsevier, vol. 67(2), pages 351-372, April.
  2. Sylvie Démurger & Hui Xu, 2010. "Return migrants: The rise of new entrepreneurs in rural China," Working Papers, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure 1008, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  3. Antman, Francisca M., 2011. "The intergenerational effects of paternal migration on schooling and work: What can we learn from children's time allocations?," Journal of Development Economics, Elsevier, Elsevier, vol. 96(2), pages 200-208, November.
  4. Giulietti, Corrado & Ning, Guangjie & Zimmermann, Klaus F, 2011. "Self-employment of rural-to-urban migrants in China," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8473, C.E.P.R. Discussion Papers.
  5. Woodruff, Christopher & Zenteno, Rene, 2007. "Migration networks and microenterprises in Mexico," Journal of Development Economics, Elsevier, Elsevier, vol. 82(2), pages 509-528, March.
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  13. Jian Zhang & Linxiu Zhang & Scott Rozelle & Steve Boucher, 2006. "Self-Employment With Chinese Characteristics: The Forgotten Engine Of Rural China'S Growth," Contemporary Economic Policy, Western Economic Association International, Western Economic Association International, vol. 24(3), pages 446-458, 07.
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Cited by:
  1. Mehtap Akgüç & Corrado Giulietti & Klaus Zimmermann, 2014. "The RUMiC longitudinal survey: fostering research on labor markets in China," IZA Journal of Labor & Development, Springer, Springer, vol. 3(1), pages 1-14, December.

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