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Out of sight, out of mind: migration, entrepreneurship and social capital
Stockholm University, Faculty of Social Sciences, Department of Economics.
2012 (English)In: Regional Science and Urban Economics, ISSN 0166-0462, Vol. 42, no 5, 890-903 p.Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2012. Vol. 42, no 5, 890-903 p.
Keyword [en]
Social capital, Entrepreneurship, Selection, Savings
National Category
Economics Economic Geography
URN: urn:nbn:se:su:diva-83984DOI: 10.1016/j.regsciurbeco.2012.04.007ISI: 000311008500011OAI: diva2:577988


Available from: 2012-12-17 Created: 2012-12-17 Last updated: 2012-12-17Bibliographically approved

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Zenou, Yves
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