More Pushed than Pulled: Self-employment in rural Mexico ten years after NAFTA

Sindy A. González and Hector Villarreal

No 20063, Working Papers from Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey

Abstract: Who are the self-employed in rural Mexico? This paper tries to answer that question with special emphasis on the role of human capital in self-employment decisions. The model presented suggests that the need for leisure/flexibility may have a driving effect once the household framework is considered. Imperfect markets may hinder possible gains of self-employment with particular groups being more vulnerable (e.g. women). Some estimated parameters in this study for propensities to become self-employed and returns to education vary between 1994 and 2004, the first decade of the North American Free Trade Agreement (NAFTA). Pull and push factors emerge in the decision to enter into self-employment in rural area. Being self-employed still may be the best or sole option for a considerable percentage of the population. The alter may suggest that if self-employment in the rural sector is posed as a development strategy, this should come with adequate policy supports.

Keywords: Mexico; rural; NAFTA; self-employment; leisure; flexibility (search for similar items in EconPapers)
JEL-codes: R10 R11 R13 R15 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2006-11, Revised 2006-11
New Economics Papers: this item is included in nep-ent, nep-his and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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