IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v24y2020i3p790-814.html
   My bibliography  Save this article

Internal migration and youth entrepreneurship in the Democratic Republic of the Congo

Author

Listed:
  • Alain Kikandi Kiuma
  • Abdelkrim Araar
  • Christian Kamala Kaghoma

Abstract

This paper analyzes youth internal migration in the Democratic Republic of the Congo (DRC) and its impact on entrepreneurship startup in a fresh post‐conflict context. Building on a national representative survey conducted in 2005, a recursive bivariate probit specification is used to jointly estimate the decision models of both migration and entrepreneurship. To evaluate the robustness of results, the propensity score matching method is used to test the concordance of the results after eliminating the redundant impact of unobserved factors. The two main conclusions are that youth migration increases the probability of being an entrepreneur, but in the informal sector. In addition, like secondary and post‐secondary education, the duration of stay after migrating is an important factor to being an entrepreneur in the formal sector. These conclusions are expected to enlighten policy‐makers as to the importance of promoting secondary and post‐secondary education as well as inclusive growth investments that may absorb more youth labor in formal sectors. This is the first exercise in the case of the DRC and since it focuses on youth, the paper makes a unique contribution to the literature related to the link between migration and entrepreneurship in a post‐war context.

Suggested Citation

  • Alain Kikandi Kiuma & Abdelkrim Araar & Christian Kamala Kaghoma, 2020. "Internal migration and youth entrepreneurship in the Democratic Republic of the Congo," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 790-814, August.
    • Handle: RePEc:bla:rdevec:v:24:y:2020:i:3:p:790-814
    DOI: 10.1111/rode.12669
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rode.12669
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rode.12669?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Simone Bertoli & Ilse Ruyssen, 2018. "Networks and migrants’ intended destination," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 705-728.
    2. Shoji, Masahiro & Aoyagi, Keitaro & Kasahara, Ryuji & Sawada, Yasuyuki & Ueyama, Mika, 2012. "Social Capital Formation and Credit Access: Evidence from Sri Lanka," World Development, Elsevier, vol. 40(12), pages 2522-2536.
    3. Woodruff, Christopher & Zenteno, Rene, 2007. "Migration networks and microenterprises in Mexico," Journal of Development Economics, Elsevier, vol. 82(2), pages 509-528, March.
    4. Bauernschuster, Stefan & Falck, Oliver & Heblich, Stephan, 2010. "Social capital access and entrepreneurship," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 821-833, December.
    5. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    6. Charles Ackah & Denis Medvedev, 2012. "Internal migration in Ghana: determinants and welfare impacts," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(10), pages 764-784, August.
    7. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    8. Falco, Paolo & Haywood, Luke, 2016. "Entrepreneurship versus joblessness: Explaining the rise in self-employment," Journal of Development Economics, Elsevier, vol. 118(C), pages 245-265.
    9. Ratan J. S. Dheer, 2018. "Entrepreneurship by immigrants: a review of existing literature and directions for future research," International Entrepreneurship and Management Journal, Springer, vol. 14(3), pages 555-614, September.
    10. Filippini, Massimo & Greene, William H. & Kumar, Nilkanth & Martinez-Cruz, Adan L., 2018. "A note on the different interpretation of the correlation parameters in the Bivariate Probit and the Recursive Bivariate Probit," Economics Letters, Elsevier, vol. 167(C), pages 104-107.
    11. Robinson, Amanda Lea, 2020. "Ethnic Diversity, Segregation and Ethnocentric Trust in Africa," British Journal of Political Science, Cambridge University Press, vol. 50(1), pages 217-239, January.
    12. Hirvonen, Kalle & Lilleør, Helene Bie, 2015. "Going Back Home: Internal Return Migration in Rural Tanzania," World Development, Elsevier, vol. 70(C), pages 186-202.
    13. Todaro, Michael P, 1969. "A Model for Labor Migration and Urban Unemployment in Less Developed Countries," American Economic Review, American Economic Association, vol. 59(1), pages 138-148, March.
    14. Wahba, Jackline & Zenou, Yves, 2012. "Out of sight, out of mind: Migration, entrepreneurship and social capital," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 890-903.
    15. Blanchflower, D. & Oswald, A., 1990. "What Makes A Young Entrepreneur?," Papers 373, London School of Economics - Centre for Labour Economics.
    16. Theodore Trefon Saskia & Saskia Van Hoyweghen & Stefaan Smis, 2002. "State failure in the Congo: perceptions & realities," Review of African Political Economy, Taylor & Francis Journals, vol. 29(93-94), pages 379-388, September.
    17. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    18. Banerjee, Biswajit, 1983. "The Role of the Informal Sector in the Migration Process: A Test of Probabilistic Migration Models and Labour Market Segmentation for India," Oxford Economic Papers, Oxford University Press, vol. 35(3), pages 399-422, November.
    19. Bernard F. Lentz & David N. Laband, 1990. "Entrepreneurial Success and Occupational Inheritance among Proprietors," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 563-579, August.
    20. Malgorzata Switek, 2016. "Internal Migration and Life Satisfaction: Well-Being Paths of Young Adult Migrants," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 191-241, January.
    21. Brixiová, Zuzana & Ncube, Mthuli & Bicaba, Zorobabel, 2015. "Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland," World Development, Elsevier, vol. 67(C), pages 11-26.
    22. Louise Fox & Lemma W. Senbet & Witness Simbanegavi, 2016. "Youth Employment in Sub-Saharan Africa: Challenges, Constraints and Opportunities," Journal of African Economies, Centre for the Study of African Economies, vol. 25(suppl_1), pages 3-15.
    23. Catia Batista & Janis Umblijs, 2014. "Migration, risk attitudes, and entrepreneurship: evidence from a representative immigrant survey," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-25, December.
    24. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
    25. Haifeng Qian, 2010. "Talent, creativity and regional economic performance: the case of China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 133-156, August.
    26. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    27. Marchetta, Francesca, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," World Development, Elsevier, vol. 40(10), pages 1999-2013.
    28. Krieg, Randall G., 1997. "Occupational change, employer change, internal migration, and earnings," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 1-15, February.
    29. Dai, Ou & Liu, Xiaohui, 2009. "Returnee entrepreneurs and firm performance in Chinese high-technology industries," International Business Review, Elsevier, vol. 18(4), pages 373-386, August.
    30. Jonathan Levie, 2007. "Immigration, In-Migration, Ethnicity and Entrepreneurship in the United Kingdom," Small Business Economics, Springer, vol. 28(2), pages 143-169, March.
    31. Marie-Laurence Flahaux, 2015. "Intention et réalisation de migration de retour au Sénégal et en République démocratique du Congo," Population (french edition), Institut National d'Études Démographiques (INED), vol. 70(1), pages 103-133.
    32. David Kudzaishe Garwe & Olawale Fatoki, 2012. "The impact of gender on SME characteristics and access to debt finance in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 29(3), pages 448-461, September.
    33. Sonia LASZLO & Eric SANTOR, 2009. "Migration, Social Networks, And Credit: Empirical Evidence From Peru," The Developing Economies, Institute of Developing Economies, vol. 47(4), pages 383-409, December.
    34. Dorrit Posel & Daniela Casale, 2003. "What Has Been Happening To Internal Labour Migration In South Africa, 1993–1999?," South African Journal of Economics, Economic Society of South Africa, vol. 71(3), pages 455-479, September.
    35. Knight, John & Gunatilaka, Ramani, 2010. "Great Expectations? The Subjective Well-being of Rural-Urban Migrants in China," World Development, Elsevier, vol. 38(1), pages 113-124, January.
    36. Piracha, Matloob & Vadean, Florin, 2010. "Return Migration and Occupational Choice: Evidence from Albania," World Development, Elsevier, vol. 38(8), pages 1141-1155, August.
    37. Junge, Vera & Revilla Diez, Javier & Schätzl, Ludwig, 2015. "Determinants and Consequences of Internal Return Migration in Thailand and Vietnam," World Development, Elsevier, vol. 71(C), pages 94-106.
    38. Kosec, Katrina & Ghebru, Hosaena & Holtemeyer, Brian & Mueller, Valerie & Schmidt, Emily, 2016. "The effect of land inheritance on youth employment and migration decisions: Evidence from rural Ethiopia," IFPRI discussion papers 1594, International Food Policy Research Institute (IFPRI).
    39. Wim Naudé & Melissa Siegel & Katrin Marchand, 2017. "Migration, entrepreneurship and development: critical questions," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-16, December.
    40. G. S. Maddala & Lung-Fei Lee, 1976. "Recursive Models with Qualitative Endogenous Variables," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 525-545, National Bureau of Economic Research, Inc.
    41. Hendrik Van den Berg & Örn B. Bodvarsson, 2009. "The Economics of Immigration," Springer Books, Springer, number 978-3-540-77796-0, November.
    42. Bao, Shuming & Bodvarsson, Örn B. & Hou, Jack W. & Zhao, Yaohui, 2007. "Interprovincial Migration in China: The Effects of Investment and Migrant Networks," IZA Discussion Papers 2924, Institute of Labor Economics (IZA).
    43. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    44. repec:dau:papers:123456789/4327 is not listed on IDEAS
    45. Mezger Kveder, Cora Leonie & Flahaux, Marie-Laurence, 2013. "Returning to Dakar: A Mixed Methods Analysis of the Role of Migration Experience for Occupational Status," World Development, Elsevier, vol. 45(C), pages 223-238.
    46. Neville, François & Orser, Barbara & Riding, Allan & Jung, Owen, 2014. "Do young firms owned by recent immigrants outperform other young firms?," Journal of Business Venturing, Elsevier, vol. 29(1), pages 55-71.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dejan Djordjevic & Dragan Cockalo & Srdjan Bogetic & Mihalj Bakator, 2021. "Predicting Entrepreneurial Intentions among the Youth in Serbia with a Classification Decision Tree Model with the QUEST Algorithm," Mathematics, MDPI, vol. 9(13), pages 1-27, June.
    2. Dileni Gunewardena & Abdoulaye Seck, 2020. "Heterogeneity in entrepreneurship in developing countries: Risk, credit, and migration and the entrepreneurial propensity of youth and women," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 713-725, August.
    3. Chowdhury, Shyamal & Hasan, Syed & Sharma, Uttam, 2024. "The Role of Trainee Selection in the Effectiveness of Vocational Training: Evidence from a Randomized Controlled Trial in Nepal," IZA Discussion Papers 16705, Institute of Labor Economics (IZA).
    4. Akilimali Ndatabaye Ephrem & Paul Martin Dontsop Nguezet & McEdward Murimbika & Zoumana Bamba & Victor Manyong, 2021. "Perceived Social Norms and Agripreneurial Intention among Youths in Eastern DRC," Sustainability, MDPI, vol. 13(6), pages 1-21, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alain Kikandi Kiuma & Christian Kamala Kaghoma & Joelle Mukenyi Kalala & Allegra Kabamba Mbuyi, 2015. "Mobilité interne et entrepreneuriat des jeunes en République démocratique du Congo," Working Papers PMMA 2015-07, PEP-PMMA.
    2. Naudé, Wim & Siegel, Melissa & Marchand, Katrin, 2015. "Migration, Entrepreneurship and Development: A Critical Review," IZA Discussion Papers 9284, Institute of Labor Economics (IZA).
    3. Ajzenman, Nicolás & Aksoy, Cevat Giray & Guriev, Sergei, 2022. "Exposure to transit migration: Public attitudes and entrepreneurship," Journal of Development Economics, Elsevier, vol. 158(C).
    4. Jiangbin Yin & Xiaoyan Huang & Yunyun Dong & Min Zhao & Weibao Tan, 2021. "Dual‐level impact of regional context and individual attributes on entrepreneurship among return migrants in China," Growth and Change, Wiley Blackwell, vol. 52(2), pages 1099-1116, June.
    5. Raluca Mariana Grosu & Elena Ecaterina Nicolae, 2015. "Best practices in the field of returnee entrepreneurship," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(39), pages 799-799, May.
    6. El-Mallakh, Nelly & Wahba, Jackline, 2021. "Upward or downward: Occupational mobility and return migration," World Development, Elsevier, vol. 137(C).
    7. Khaled Sultan Alhosani & Kamarul Bahari Yaakub, 2021. "The Relationship Between Total Quality Management Practices and Secondary School Performance with Mediating Effect of Organizational Culture in Abu Dhabi: Structural Equation Modeling Approach," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 6, July -Dec.
    8. Wim Naudé & Melissa Siegel & Katrin Marchand, 2017. "Migration, entrepreneurship and development: critical questions," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-16, December.
    9. Laurent Bossavie & Çağlar Özden, 2023. "Impacts of Temporary Migration on Development in Origin Countries," The World Bank Research Observer, World Bank, vol. 38(2), pages 249-294.
    10. Nicolás Ajzenman & Cevat Giray Aksoy & Sergei Guriev, 2020. "Exposure to Transit Migration, Public Attitudes and Entrepreneurship," Department of Economics Working Papers wp_gob_2020_02, Universidad Torcuato Di Tella.
    11. Brück, Tilman & Mahe, Clotilde & Naudé, Wim, 2018. "Return Migration and Self-Employment: Evidence from Kyrgyzstan," IZA Discussion Papers 11332, Institute of Labor Economics (IZA).
    12. Auer, Daniel & Schaub, Max, 2023. "Returning from greener pastures? How exposure to returnees affects migration plans," World Development, Elsevier, vol. 169(C).
    13. Jackline Wahba, 2014. "Return migration and economic development," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 12, pages 327-349, Edward Elgar Publishing.
    14. Mahé, Clothilde, 2016. "Skills and entrepreneurship: Are return migrants 'Jacks-of-all-trades'?," MERIT Working Papers 2016-071, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Bertoli, Simone & Marchetta, Francesca, 2015. "Bringing It All Back Home – Return Migration and Fertility Choices," World Development, Elsevier, vol. 65(C), pages 27-40.
    16. Tiwari, Smriti, 2021. "Do macroeconomic fluctuations at destination matter in determining migrants’ return decisions?," World Development, Elsevier, vol. 148(C).
    17. Christian Dustmann & Joseph-Simon Görlach, 2016. "The Economics of Temporary Migrations," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 98-136, March.
    18. Thierry Baudassé & Rémi Bazillier & Ismaël Issifou, 2018. "Migration And Institutions: Exit And Voice (From Abroad)?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 727-766, July.
    19. Mezger Kveder, Cora Leonie & Flahaux, Marie-Laurence, 2013. "Returning to Dakar: A Mixed Methods Analysis of the Role of Migration Experience for Occupational Status," World Development, Elsevier, vol. 45(C), pages 223-238.
    20. Simone Bertoli & Francesca Marchetta, 2014. "Migration, Remittances and Poverty in Ecuador," Journal of Development Studies, Taylor & Francis Journals, vol. 50(8), pages 1067-1089, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:24:y:2020:i:3:p:790-814. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.