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Entrepreneurship of the Left-Behind

  • Giulietti, Corrado

    ()

    (IZA)

  • Wahba, Jackline

    ()

    (University of Southampton)

  • Zimmermann, Klaus F.

    ()

    (IZA and University of Bonn)

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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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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  1. Mendola, Mariapia & Carletto, Gero, 2009. "International migration and gender differentials in the home labor market : evidence from Albania," Policy Research Working Paper Series 4900, The World Bank.
  2. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
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  10. 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, vol. 96(2), pages 200-208, November.
  11. Sylvie Démurger & Hui Xu, 2010. "Return migrants : The rise of new entrepreneurs in rural China," Post-Print halshs-00477241, HAL.
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  13. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
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  15. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, 04.
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