2012

Out of Sight, Out of Mind: Migration, Entrepreneurship and Social Capital

Reprint No. 2012:41

Author(s): Jackline Wahba and Yves ZenouYear: 2012 Title: Regional Science and Urban Economics Volume (No.): 42 (5) Pages: 890–903
Online article (restrictions may apply)


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 find 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.


Reference:
Wahba, Jackline and Yves Zenou (2012), "Out of Sight, Out of Mind: Migration, Entrepreneurship and Social Capital". Regional Science and Urban Economics 42(5), 890–903.

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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