Return Migration, Self‐Selection and Entrepreneurship

25 Pages Posted: 6 Sep 2017

See all articles by Catia Batista

Catia Batista

Nova School of Business and Economics; CReAM; IZA Institute of Labor Economics; NOVAFRICA

Tara McIndoe Calder

Central Bank of Ireland; University of Dublin - Institute for International Integration Studies

Pedro C. Vicente

New University of Lisbon - Nova School of Business and Economics

Date Written: October 2017

Abstract

Are return migrants more entrepreneurial? Existing literature has not addressed how estimating the impact of return migration on entrepreneurship is affected by double unobservable migrant self‐selection, both at the initial outward migration and at the final inward return migration stages. This paper exploits exogenous variation provided by the civil war and the incidence of agricultural plagues in Mozambique, as well as social unrest and other shocks in migrant destination countries. The results lend support to overall negative unobservable return migrant self‐selection, which results in an under‐estimation of the effects of return migration on entrepreneurial outcomes when using a ‘naïve’ estimator that does not control for self‐selection at both the initial migration and at the final return migration stages.

Suggested Citation

Batista, Catia and McIndoe Calder, Tara and Vicente, Pedro C., Return Migration, Self‐Selection and Entrepreneurship (October 2017). Oxford Bulletin of Economics and Statistics, Vol. 79, Issue 5, pp. 797-821, 2017, Available at SSRN: https://ssrn.com/abstract=3032803 or http://dx.doi.org/10.1111/obes.12176

Catia Batista (Contact Author)

Nova School of Business and Economics ( email )

Universidade Nova de Lisboa
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Portugal

CReAM

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IZA Institute of Labor Economics ( email )

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NOVAFRICA ( email )

Nova School of Business and Economics
Rua da Holanda, 1
Carcavelos, 2775-405
Portugal

HOME PAGE: http://www.novafrica.org

Tara McIndoe Calder

Central Bank of Ireland ( email )

P.O. Box 559
Dame Street
Dublin, 2
Ireland

University of Dublin - Institute for International Integration Studies ( email )

The Sutherland Centre Level 6 Arts Building
Trinity College
Dublin 2
Ireland

Pedro C. Vicente

New University of Lisbon - Nova School of Business and Economics ( email )

Campus de Campolide
Lisbon, 1099-032
Portugal

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