Return Migration and Occupational Change
Review of Development Economics, January 31, 1998
Posted: 10 Jun 1998
Return migrants exhibit a high tendency for self- over wage-employment. Using cross section data from Pakistan, the paper explores the determinants of this choice. Retirement from the domestic labor market is not a reason for opting for self-employment. The preference for non-farm self-employment is a two period process of self-selection. Migrants who expect to switch occupation to non-farm self-employment upon return save more from high transitory overseas income than their counterparts. At return, savings becomes a significant factor in the choice of self-employment over wage-employment. International migration and return have little influence on the choice of farm self-employment.
JEL Classification: J23, J24, J61
Suggested Citation: Suggested Citation