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Mexican microenterprise investment and employment : the role of remittances

Author

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  • Christopher Woodruff

    (Instituto para la Integración de América Latina y el Caribe, INTAL)

Abstract

Utilizando datos de encuestas mexicanas a microempresas conducidos entre 1992 y 1998 se examina la relación entre la inmigración a USA y las inversiones en microempresas; el uso de trabajo pago e impago, y las ganancias de los microemprendedores Se concluye que las inversiones en microempresas están positivamente asociadas a las tasas de migración y que aquellas, cuyos dueños son mujeres, están también asociadas a un uso más extendido del trabajo impago. Para los hombres, la relación entre la migración y el caudal del capital invertido creció más fuertemente durante la década de los noventa. Dado el rápido crecimiento de la emigración y de los flujos de remesas durante la década de los noventa, ésto es consistente con las expectativas. Estos resultados se aplican a la tasa de migración del lugar de nacimiento del propietario de la microempresa, sin considerar su actual lugar de residencia y cuenta también para medir las tasas históricas de migración. Mediciones de densidad de núcleo muestran que los emprendedores nacidos en regiones de México con una alta tasa de migración tienen mayores ganancias = Using data from Mexican surveys of Microenterprises conducted between 1992 and 1998, we examine the association between migration to the US and investment in microenterprises, the use of paid and unpaid labor, and the earnings of micro entrepreneurs. We find that investments in microenterprises are positively associated with migration rates and that in enterprises owned by females, migration is also associated with greater use of unpaid labor. For males, the connection between migration and the log of invested capital grew much stronger during the 1990s. Given the rapid increase in out-migration and remittance flows during the 1990s, this is consistent with expectations. These results apply to the migration rate of the microenterprise owner's state of birth, regardless of his/her current state of residence, and hold when current migration rates are instrumented for using historical migration rates. Kernel densities show that entrepreneurs born in high migration regions in Mexico have higher earnings = Utilizando dados de pesquisas mexicanas e microempresas entre 1992-98, foi examinado a relaçao entre a imigraçao para os EUA e os investimentos em microempresas, o uso do trabalho pago e nao pago e os lucros dos microempresarios. Se conclui que os investimentos em microempresas estao positivamente relacionados as taxas de imigraçao e que aquelas, cujos donos sao mulheres, também estao relacionados ao uso mais longo de trabalho nao pago. Para os homens, a relaçao entre a imigraçao e a quantidade de capital investido cresceu mais fortemente durante a década dos noventa. Em funçao do rápido crescimento da imigraçao e dos fluxos de remessas durante a década dos noventa, estes resultados sao consistentes com as expectativas. Estes resultados se aplicam as taxas de imigraçao do lugar de nascimento e do proprietário da microempresa, sem tomar em consideraçao seu lugar atual de residência e também para medir as taxas históricas de imigraçao. Mediçoes de densidade de núcleo mostram que os empresários nascidos em regioes do México com altas taxas de imigraçao tiveram maiores lucros

Suggested Citation

  • Christopher Woodruff, 2007. "Mexican microenterprise investment and employment : the role of remittances," INTAL Working Papers 1452, Inter-American Development Bank, INTAL.
  • Handle: RePEc:idb:intalp:1452
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    Cited by:

    1. Demirgüç-Kunt, Asli & Córdova, Ernesto López & Pería, María Soledad Martínez & Woodruff, Christopher, 2011. "Remittances and banking sector breadth and depth: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 95(2), pages 229-241, July.
    2. Mim, Sami Ben & Ali, Mohamed Sami Ben, 2012. "Through which channels can remittances spur economic growth in MENA countries?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 6, pages 1-27.
    3. Aggarwal, Reena & Demirgüç-Kunt, Asli & Pería, Maria Soledad Martínez, 2011. "Do remittances promote financial development?," Journal of Development Economics, Elsevier, vol. 96(2), pages 255-264, November.
    4. Cynthia Bansak & Brian Chezum & Animesh Giri, 2015. "Remittances, school quality, and household education expenditures in Nepal," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-19, December.
    5. Ambrosius, Christian & Cuecuecha, Alfredo, 2016. "Remittances and the Use of Formal and Informal Financial Services," World Development, Elsevier, vol. 77(C), pages 80-98.
    6. Anzoategui, Diego & Demirgüç-Kunt, Asli & Martínez Pería, María Soledad, 2014. "Remittances and Financial Inclusion: Evidence from El Salvador," World Development, Elsevier, vol. 54(C), pages 338-349.
    7. Nyamongo, Esman Morekwa & Misati, Roseline N. & Kipyegon, Leonard & Ndirangu, Lydia, 2012. "Remittances, financial development and economic growth in Africa," Journal of Economics and Business, Elsevier, vol. 64(3), pages 240-260.
    8. Alcaraz, Carlo & Chiquiar, Daniel & Salcedo, Alejandrina, 2012. "Remittances, schooling, and child labor in Mexico," Journal of Development Economics, Elsevier, vol. 97(1), pages 156-165.
    9. Mim, Sami Ben & Ali, Mohamed Sami Ben, 2012. "Through which channels can remittances spur economic growth in MENA countries?," Economics Discussion Papers 2012-8, Kiel Institute for the World Economy (IfW).

    More about this item

    Keywords

    MICROEMPRESAS; MIPYMES; TRABAJO; REMESAS; MIGRACIONES;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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