Overseas Work Experience, Savings and Entrepreneurship Amongst Return Migrants to Ldcs

27 Pages Posted: 6 Jun 2001

See all articles by Barry McCormick

Barry McCormick

IZA Institute of Labor Economics

Jackline Wahba

University of Southampton, Department of Economics; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: May 2001

Abstract

This paper contributes to a small but rapidly growing literature concerned with the potentially substantial implications of international migration for economic development in LDCs. We study the linkages between overseas employment, savings and entrepreneurial activity on return. In an econometric model of the probability of entrepreneurial activity, we find evidence supporting the hypotheses that both overseas savings, and the duration of stay overseas increase the probability of becoming an entrepreneur amongst literate returnees to Egypt. Amongst illiterate returnees, overseas savings alone increase the probability of becoming an entrepreneur. The results for literates suggest that skill acquisition overseas may matter more substantially than overcoming a savings constraint in explaining how overseas opportunities influence entrepreneurship on return. For illiterates, who usually accept menial positions overseas that offer little opportunity for learning, the opposite obtains.

Keywords: Return migration, overseas savings, entrepreneurship, overseas work experience

JEL Classification: J23, J61, F22, O15

Suggested Citation

McCormick, Barry and Wahba, Jackline, Overseas Work Experience, Savings and Entrepreneurship Amongst Return Migrants to Ldcs (May 2001). Available at SSRN: https://ssrn.com/abstract=267991 or http://dx.doi.org/10.2139/ssrn.267991

Barry McCormick

IZA Institute of Labor Economics ( email )

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Jackline Wahba (Contact Author)

University of Southampton, Department of Economics ( email )

Southampton, SO171BJ
United Kingdom
+44 23 8059 3996 (Phone)

HOME PAGE: http://https://sites.google.com/site/jackiewahba/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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