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International Migration Experience and Entrepreneurship: Evidence from Mexico
1Office of Population Research, Princeton University.
World Development
|September 9, 2020
Summary
International migration experience boosts entrepreneurship in home communities. Migrants gain resources, fostering job creation and economic development, especially with documented status.
Area of Science:
- Sociology
- Economics
- Development Studies
Background:
- International migration is a significant global phenomenon.
- Entrepreneurship plays a crucial role in economic development.
- Understanding the link between migration and entrepreneurship is vital for policy.
Purpose of the Study:
- To investigate the impact of international migration experience on entrepreneurship in sending regions.
- To identify factors influencing entrepreneurial entry among migrants.
- To explore the role of migration in fostering economic development.
Main Methods:
- Utilized retrospective life history data from the Mexican Migration Project (N = 11,789 persons & 146,372 person-years).
- Estimated annual probability of entrepreneurial entry across 170 Mexican communities (1975-2017).
- Focused on non-street-vending enterprises with non-family employees to identify prosperous businesses.
Main Results:
- Any prior migration experience significantly increases entrepreneurial entry probability compared to non-migrants.
- Accumulated months of migration experience show a positive association with entrepreneurial entry.
- Undocumented migration status is linked to a lower probability of entrepreneurial entry.
Conclusions:
- International migration experience equips individuals with essential human and financial resources for entrepreneurship.
- Entrepreneurship serves as a key pathway for international migration to stimulate economic development in less developed regions.
- Immigration policies can influence migrants' resource mobilization, impacting their contribution to home-country economic development.
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