Return migration, entrepreneurship, and assets

Abstract

International migrants return to their home countries in high proportions. This research analyzes the relationship between return migration and entrepreneurship in the case of Mexico. Using past community migration as an instrument, we find that return migrants become entrepreneurs more often than non-migrants, but only in recent periods. Return migrants also tend to accumulate more assets than non-migrants. However, the businesses owned by return migrants tend to have fewer than four employees, and thus do not have much potential for job creation. Policy supporting bigger enterprises is recommended.