Out of sight, out of mind: migration, entrepreneurship and social capital
Out of sight, out of mind: migration, entrepreneurship and social capital
The aim of this paper is to investigate whether return migrants are more likely to become entrepreneurs than non-migrants. We develop a theoretical search model that puts forward the trade off faced by returnees since overseas migration provides an opportunity for human and physical capital accumulation but, at the same time, may lead to a loss of social capital back home. We test the predictions of the model using data from Egypt. We and that, even after controlling for the endogeneity of the temporary migration decision, an overseas returnee is more likely to become an entrepreneur than a non-migrant. Although migrants may lose their social capital, they accumulate savings and experience overseas that increase their chances of becoming entrepreneurs.
social capital, entrepreneurship, selection, savings
890-903
Wahba, Jackline
03ae9304-c329-40c6-9bfc-d91cfa9e7164
Zenou, Yves
f7c3b72f-b6b6-4550-8b0f-00a127af082e
September 2012
Wahba, Jackline
03ae9304-c329-40c6-9bfc-d91cfa9e7164
Zenou, Yves
f7c3b72f-b6b6-4550-8b0f-00a127af082e
Wahba, Jackline and Zenou, Yves
(2012)
Out of sight, out of mind: migration, entrepreneurship and social capital.
[in special issue: Migration and Development]
Regional Science and Urban Economics, 42 (5), .
(doi:10.1016/j.regsciurbeco.2012.04.007).
Abstract
The aim of this paper is to investigate whether return migrants are more likely to become entrepreneurs than non-migrants. We develop a theoretical search model that puts forward the trade off faced by returnees since overseas migration provides an opportunity for human and physical capital accumulation but, at the same time, may lead to a loss of social capital back home. We test the predictions of the model using data from Egypt. We and that, even after controlling for the endogeneity of the temporary migration decision, an overseas returnee is more likely to become an entrepreneur than a non-migrant. Although migrants may lose their social capital, they accumulate savings and experience overseas that increase their chances of becoming entrepreneurs.
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e-pub ahead of print date: 14 May 2012
Published date: September 2012
Keywords:
social capital, entrepreneurship, selection, savings
Organisations:
Economics
Identifiers
Local EPrints ID: 73468
URI: http://eprints.soton.ac.uk/id/eprint/73468
ISSN: 0166-0462
PURE UUID: 9439a473-150f-44d4-bac9-e18fcca573c8
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Date deposited: 09 Mar 2010
Last modified: 14 Mar 2024 02:38
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Author:
Yves Zenou
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