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Is Entrepreneurship Inherited? A Study of Intergenerational Social Mobility in Mexico

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  • Viviana Velez-Grajales
  • Roberto Velez-Grajales

Abstract

The 2006 ESRU Survey on Social Mobility in Mexico is used to identify determinants of the decision to become an entrepreneur and analyze entrepreneurs' intergenerational (i.e., respondents-parents) household wealth mobility. Entrepreneurs are distinguished from own-account workers. First, we find that entrepreneurship is strongly determined by the father being an entrepreneur and not necessarily by the individual's initial wealth or educational attainment. Second, the mean ef fect of entrepreneurial activity on individual income is positive and greater for those whose parents belonged to the extreme ends of the socioeconomic distribution. Third, it is more likely for entrepreneurs to experience greater upward wealth mobility than non-entrepreneurs.

Suggested Citation

  • Viviana Velez-Grajales & Roberto Velez-Grajales, 2014. "Is Entrepreneurship Inherited? A Study of Intergenerational Social Mobility in Mexico," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 51(2), pages 247-278, November.
    • Handle: RePEc:ioe:cuadec:v:51:y:2014:i:2:p:247-278
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    Cited by:

    1. Bukstein Daniel & Gandelman Nestor, 2018. "Cohort, Age and Business Cycle Effects in Entrepreneurship in Latin America," Entrepreneurship Research Journal, De Gruyter, vol. 8(3), pages 1-13, July.
    2. Alexander Roth & Ivana Blažková, 2023. "Does parental socio-economic status matter for the success of start-ups of first-time founders? Evidence from Germany," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 25(1), pages 66-82, June.
    3. Jacob Hörisch & Jana Kollat & Steven A. Brieger, 2017. "What influences environmental entrepreneurship? A multilevel analysis of the determinants of entrepreneurs’ environmental orientation," Small Business Economics, Springer, vol. 48(1), pages 47-69, January.
    4. Matthew J. Lindquist & Theodor Vladasel, 2022. "Are Entrepreneurs More Upwardly Mobile?," Working Papers 1351, Barcelona School of Economics.

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    More about this item

    Keywords

    social mobility; entrepreneurship; propensity score matching; Mexico;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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